London-listed international wealth manager, Old Mutual, has acquired Cape Town-based money management tool, 22Seven, for an undisclosed sum, it was announced on Friday

This confirms rumours making the rounds in recent weeks that Old Mutual was attracted to the tech start-up with tumultuous beginnings.

In terms of the deal, 22Seven will be absorbed into Old Mutual’s plans to develop digital support for its customers.

22Seven founder and CEO, Christo Davel, said the start-up needed an established, well-respected international brand to help grow the company in the future.

“We’ve always had big plans for our service, and what we think it’s capable of doing. With Old Mutual’s support, the evolution and enhancement will happen much faster,” Davel said.

Davel was the founder of the failed online bank, 20twenty.

Things began to go pear-shaped for 22Seven when it lost one of its original funders Hasso Plattner Ventures (HPV). This funder pulled out during its Series B funding stage due to non-performance.

“When you have a bunch of funders there is a likelihood that some of them will decide to carry on and some won’t. This was the case. During the second round of funding there was a very specific reason in their [HPV] mandate that prevented them from carrying on. They remained shareholders in the business until this transaction went through,” Davel said.

In terms of the deal, Old Mutual bought out all 22Seven shareholders, making 22Seven its wholly-owned company.

As part of its strategy with Old Mutual, 22Seven will expand its offering to include multiple currencies, a clear road for global expansion as well as technological and strategic partnerships with Old Mutual companies such as Nedbank, South Africa’s fourth biggest bank.

22Seven was launched at the end of January 2012. 22Seven provides consumers with a graphical representation of their income and spend in an effort to help them manage their personal finances better. It offers users a 30-day trial followed by a R70/month subscription.

Old Mutual strategic marketing director, Carlton Hood, said 22seven has a “fantastic number of customers for a start-up that’s done no marketing, but nowhere nearly yet enough for us”.

Hood said the acquisition was in line with Old Mutual’s plans to “ramp up” its “digital competence” and to offer 22Seven as a “value service” to its customers. He said Old Mutual hasn’t decided whether to make the product available for free to its clients.

Last year, FNB, one of South Africa’s top banks, enabled 22Seven to have limited access to its customers’ accounts, breaking ranks with other big banks that rejected the idea because it “was risky.”

Davel wanted bank customers to provide their Internet banking login details so it can provide them with a detailed summary of their income and expenditure. This was aimed at helping these customers prioritise their personal spending patterns.

South Africa’s big banks rejected the idea in the past, saying it would risk customers’ personal information and weaken security at these financial institutions.