The deal brings it 24,000 customers and increases its assets under management by £870m.
The deal will be financed by Moneyfarm’s current shareholders, including M&G, Poste Italiane and Fondazione di Sardegna. It is expected to close in the first half of next year.
The acquisition marks a “significant expansion” into the UK pensions market for the London-headquartered online wealth management firm.
It says the pension market is “burgeoning”, standing at £680b and has grown by 24% since 2016.
Moneyfarm said the acquisition of Profile Pensions could help its current customers with more flexibility in investing and consolidating their pensions.
Giovanni Daprà, co-founder and chief executive at Moneyfarm, said: “Profile Pensions gives flexibility to pensions investing as it allows you to track down your pensions, identify which investments are suitable for you, and manage them in a way that’s more aligned to your circumstances.
“Through the acquisition of Profile Pensions, Moneyfarm will create an even greater opportunity for our clients to maximise the long-term value of their assets by allowing them to easily consolidate their pensions investments alongside their normal investment, ISA and SIPP accounts.”
Jordan Mayo, chief executive of Profile Pensions, added: “The team at Profile Pensions has built a whole of market pensions advice, consolidation and drawdown platform that delivers outstanding customer outcomes and world class customer satisfaction.”