Purple Group acquires Telescope AI in R177 million deal

Purple Group has agreed to acquire Telescope AI, an Australian fintech that already supplies technology to EasyEquities. The deal is worth up to US$10.75 million (about R177 million). The JSE-listed company and its subsidiary, First World Trader, will each acquire a 50% stake in Telescope AI. They are buying the business from the Pettett Family Trust and three key employees, giving Purple Group full ownership. Founded in 2023, Telescope AI develops software for investment research, market analysis, compliance and customer support. Its clients include IG Group, CMC Markets, tastytrade, Sharesies in New Zealand and EasyEquities. Purple Group said the company’s products are used by more than three million people across seven markets and support 13 languages. Its compliance platform, Guardrails, has completed more than 2.5 million checks.

Bringing the technology in-house

EasyEquities became Telescope AI’s first enterprise customer in 2024 when it launched AI Baskets. The feature helps users discover themed investment opportunities. Purple Group said owning the company will allow it to expand Telescope AI’s products across its platform. It also removes the need to rely on an outside technology provider. The group has around 1.3 million active customers and more than R100 billion in assets on its platform. It also expects the deal to create another source of revenue by offering Telescope AI’s products to other financial services companies.

Deal includes cash, shares and future payments

Purple Group will pay US$7 million when the transaction closes. That includes US$5 million in cash and US$2 million through the issue of 19.1 million new Purple Group shares. Another US$3.75 million could be paid over the next five years. Up to US$2.75 million depends on Telescope AI keeping its operating cash outflows within agreed limits. A further US$1 million is tied to performance targets. Purple Group can settle those deferred payments in either cash or shares. The purchase price is well above Telescope AI’s current financial position. Unaudited management accounts for the six months ended February 2026 show net assets of A$495,000 (about R5.3 million). The company also reported an after-tax loss of A$88,000. The figures suggest Purple Group is buying more than the company’s current earnings. The value is in the software, the team behind it and the customer relationships it has built with online trading platforms.