Tavistock Investments PLC is to acquire LEBC Hummingbird Limited, which maps model allocations for investment funds and portfolios, for £3mln.
Hummingbird is used by investment managers to match their investment solutions with the differing risk profiles identified through the use of "attitude to risk" questionnaires.
In the year to end-September 2021, Hummingbird generated gross revenues of £0.61mln and profits before tax of £0.43mln, having started trading in 2020 as a provider of financial research for the LEBC Group.
Tavistock recently bought a 21% stake in Hummingbird's ultimate parent company, LEBC Holdings.
Derek Miles, LEBC's managing director, said: "Hummingbird's revenues and EBITDA have grown rapidly, and we are excited about our future prospects.
“We look forward to continuing to work closely with Tavistock's management team to enhance both businesses."