Why did Westpac (ASX:WBC) just buy this app from AMP?

Westpac just bolstered its digital offering…

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It has been a positive day for the Westpac Banking Corp (ASX: WBC) share price on Tuesday.

In afternoon trade, the banking giant’s shares are up almost 1% to $20.90.

Why is the Westpac share price rising today?

Today’s gain by the Westpac share price appears to be due to improving investor sentiment following a strong night of trade on Wall Street. That was driven by optimism that the Omicron variant may not be as bad as feared.

In addition, a bullish broker note out of Morgans on Monday may have given the Westpac share price a lift. Its analysts have reiterated their add rating and $30.50 price target, as well as dismissing concerns that the bank is a value trap.

Anything else?

While it is unlikely to be the reason the Westpac share price is rising today, the banking giant has announced a small acquisition.

According to the release, Westpac has agreed terms to acquire money management app, MoneyBrilliant, from AMP Limited (ASX: AMP) and management shareholders.

The release notes that MoneyBrilliant is a budgeting and cashflow tool that helps users manage their money by providing practical insights and displaying their financial accounts in the one place. This technology will ultimately be integrated into Westpac’s digital banking app.

Westpac’s Chief Executive of Consumer & Business Banking, Chris de Bruin, commented: “The acquisition of MoneyBrilliant is another important step in Westpac’s digital strategy. In recent years we’ve seen demand grow for simple and practical digital tools to help customers manage their personal finances. We look forward to further building on MoneyBrilliant’s existing capabilities and making these available to our customers.”

The transaction is expected to complete by next month, subject to various customary closing conditions. No details have been provided on the price Westpac has paid for the app.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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