SimplyBiz to buy fintech platform Defaqto for £74.3m
By Michele Maatouk
Date: Wednesday 20 Mar 2019
(Sharecast News) - SimplyBiz, which provides compliance and business services to financial advisers and institutions, has agreed the conditional acquisition of Regulus, the owner of fintech platform provider Defaqto, for £74.3m.
In order to help finance the acquisition, SimplyBiz has conditionally raised £29.1m in an institutional placing, comprising a £13.8m primary placing and a £15.3m vendor placing. The shares were placed at 180p each, which represents a 6% discount to the closing mid-market price on Tuesday.
Defaqto operates a fintech platform for 8,500 advisers and provides independent ratings of 21,000 financial products and funds, licensed by 230 brands. It has developed a proprietary, scalable and flexible IT platform and infrastructure, supporting the largest database of financial products in Europe and providing unique information and insights to aid consumer and adviser purchase decisions.
SimplyBiz said the deal creates a single fintech and support services group, which will benefit from an increased number and range of distribution channels.
The acquisition is expected to be earnings enhancing - before synergies - during the first 12 months of ownership, and provide "significant" strategic benefits.
Joint chief executive Neil Stevens and Matt Timmins said: "We are delighted to announce the successful acquisition of Defaqto, which will play an important role in building on the group's strong momentum and enabling us to unlock a wide range of additional growth opportunities.
"The combination of the largest provider of outsourced regulatory and business support to the retail financial services market, with one of the leading providers of financial information and technology, will create a market leading platform across retail financial services. Collectively the two businesses will work to enhance our proposition to the banking and general Insurance sectors whilst continuing to invest in the leading fintech platform."
At 0815 GMT, the shares were up 1.2% at 191.50p.
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