MICAP provides research and advice tools on 'tax-advantaged' products such as VCTs and EISs.

MICAP’s platform serves more than 1,000 IFA firms with information on VCTs, EISs, SEISs and Business Relief products. It includes digital application forms and post-investment reporting.

Defaqto says the deal will extend its reach from multi-asset, single strategy and MPS investment products into a wider range of tax-advantaged products.

Defaqto says the transaction will also “expand and deepen relationships” within the investment management and financial advice communities and will also use resources from across Fintel Plc, parent company of Defaqto, to improve product design and distribution in this area of the market.

The aim is to give IFAs more help in selecting suitable tax-advantaged investment products for their clients.

John Milliken, CEO at Defaqto, said: “It is great to be able to extend our proposition into a new area of the investment market.

“There is strong adjacency in terms of products and customers and strong cultural alignment, which makes this an excellent fit for both organisations. We have been impressed with the quality of MICAP’s proposition and with the acquisition we look forward to building new relationships and investing further in supporting IFAs across the Financial Planning process.”

Guy Tolhurst, CEO at Indagate Group, said: “We are delighted MICAP will become a part of Defaqto. They have some of the most comprehensive data, mission-critical technology and unrivalled understanding of Financial Planners’ needs in the industry.

“MICAP is already the market leader in servicing financial advisers with independent research, consolidated reporting and digital applications on the tax-advantaged market, and we can now utilise Defaqto’s resources and know-how to the benefit of our client base.”