Fintech Allfunds is to acquire European fintech Web Financial in a EUR145m (£120.8m) deal.

Allfunds will fund the acquisition through debt financing.

The deal is expected to close in the second quarter of this year.

The acquisition will add multi-asset and data capabilities to Allfunds’ wealth management technology proposition.

It will also strengthen the firm’s footprint in the UK, France, Germany, Spain and Swizerland.

Allfunds was one of several bidders for adviser platform Nucleus. The fintech pulled out of the race in December 2020.

Headquartered in Madrid, Web provides bespoke digital solutions for the wealth management.

With the integration of Web’s technology, Allfunds be able to bolster its tailor-made solutions available for the wealth management industry and progress towards a more streamlined, efficient fund distribution ecosystem.

Juan Alcaraz, Allfunds’ founder and CEO, said: “At Allfunds, we are fully customer-centric and, with this in mind, we are always looking for growth opportunities that complement and broaden our offering. We wish not only to fulfill our clients’ needs, but to anticipate them; the synergies, technology and talented WebFG team will, no doubt, strengthen our value proposition and help us deliver the world-class service we, at Allfunds, strive to provide.”

Web’s existing client base includes retail banks, wealth managers, investment platforms and private banks.

Web’s 100 employees will join Allfunds across six European offices.