TIDMFNTL
RNS Number : 3020T
Fintel PLC
14 November 2023
14 November 2023
Fintel plc
("Fintel", the "Company" or the "Business")
Strategic Progress through Acquisitions and Trading Update
Acquisition of two market leaders continues the expansion of our
platform
Fintel (AIM: FNTL), the leading provider of ntech and support
services to the UK Retail Financial Services sector today provides
an update on two further strategic acquisitions.
Strategic Progress - Two further acquisitions completed
-- Acquisition of VouchedFor via Fintel IQ, a technology and knowledge platform
o VouchedFor is a leading review site for Financial Advisers,
Mortgage Advisers, Solicitors and Accountants, serving over 5,000
intermediary customers
o The strategic acquisition will broaden Fintel's services to
the advice market through its technology and regulatory services
platform
o Fintel will accelerate the reach and growth of VouchedFor
going forward, providing increased growth opportunities for our
customers and enhancing its value to consumers
o Completed in November 2023, the transaction was part debt
funded with a net upfront cash consideration of GBP7.5m, of which
GBP6.5m was drawn from the Group's GBP80m revolving credit
facility
o A contingent earnout, based on a multiple of recurring revenue
generated over the next two years, is capped at GBP10m
o VouchedFor has launched the new "Elevation" product that helps
firms monitor Consumer Duty compliance that will both complement
the current product offerings and drive significant future growth.
The business is currently break-even after a period of
investment.
-- Acquisition of AKG by Defaqto, the leading provider of
financial information, ratings and fintech
o AKG is a leading provider of independent assessments and
ratings of financial strength for a range of organisations
including life companies, investment platforms and discretionary
fund managers
o The acquisition further extends Defaqto's industry-leading
portfolio of ratings and reviews for financial services and
investment professionals
o Defaqto will draw on resources from across Fintel to invest in
AKG and accelerate distribution of its proposition, both within the
sectors that it currently operates and adjacent areas
o Completed in November 2023, the transaction was funded
entirely from cash reserves with a net upfront cash consideration
of GBP1.6m. In addition, up to GBP0.4m contingent earnout is based
on certain trading criteria being delivered in the first three
years of ownership
-- Further strategic investment to accelerate future growth
o VouchedFor and AKG mark the third and fourth acquisitions by
the Company this year, following the acquisitions of learning and
development provider, Competent Adviser, and tax efficient
investing specialists, Micap completed in July 2023
o The acquisitions are in line with Fintel's strategy to improve
the retail financial services market, promote the value of
financial advice and increase consumer confidence and trust
o Fintel remains confident in continuing to deliver strategic
progress, supported by its strong balance sheet and positive
M&A pipeline
Trading Update and Outlook
The Core business continues to deliver resilient earnings in
line with board and market expectations for FY23, with the ongoing
pressures in the UK housing market being largely offset by
continued progress in software license sales and acquisitions.
Matt Timmins, Joint CEO of Fintel, commented:
" Our positive trading momentum has continued into the second
half, with continued growth in SaaS and Subscriptions revenues,
supported by our resilient, diversified revenue base.
"VouchedFor and AKG are two market leading businesses which are
highly complementary to our offering and share our vision.
VouchedFor is the UK's standard bearer for Trusted Advice while AKG
has been at the forefront of financial strength ratings and
consultancy for over 20 years. Both have strong adjacencies in
terms of our capabilities and customers, and we look forward to
further developing their compelling growth prospects.
"We continue to deliver growth organically and make progress
consolidating the fragmented software market, providing
efficiencies for advisers and creating better outcomes for all
participants. With a strong M&A pipeline, underpinned by our
balance sheet and cash position, we are confident in making further
strategic progress."
For further information please contact:
Fintel plc via MHP Group
Matt Timmins (Joint Chief Executive
Officer)
Neil Stevens (Joint Chief Executive
Officer)
David Thompson (Chief Financial
Officer)
Zeus (Nominated Adviser and
Joint Broker)
Martin Green
Dan Bate +44 (0) 20 3829 5000
Investec Bank (Joint Broker)
Bruce Garrow
David Anderson
Harry Hargreaves +44 (0) 20 7597 5970
MHP Group (Financial PR) +44 (0) 20 3128 8147
Reg Hoare Fintel@mhpgroup.com
Robert Collett-Creedy
Notes to Editors
Fintel is the UK's leading fintech and support services
business, combining the largest provider of intermediary business
support, SimplyBiz, and the leading research, ratings and Fintech
business, Defaqto.
Fintel provides technology, compliance and regulatory support to
thousands of intermediary businesses, data and targeted
distribution services to hundreds of product providers and empowers
millions of consumers to make better informed financial decisions.
We serve our customers through three core divisions:
The Intermediary Services division provides technology,
compliance, and regulatory support to thousands of intermediary
businesses through a comprehensive membership model. Members
include directly authorised IFAs, Wealth Managers and Mortgage
Brokers.
The Distribution Channels division delivers market Insight and
analysis and targeted distribution strategies to financial
institutions and product providers. Clients include major Life and
Pension companies, Investment Houses, Banks, and Building
Societies.
The Fintech and Research division (Defaqto) provides market
leading software, financial information and product research to
product providers and intermediaries. Defaqto also provides product
ratings (Star Ratings) on thousands of financial products.
Financial products are expertly reviewed by the Defaqto research
team and are compared and rated based on their underlying features
and benefits. Defaqto ratings help consumers compare and buy
financial products with confidence.
For more information about Fintel, please visit the website: www.wearefintel.com
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