Fintel sells Zest in potential £11.5m deal
Thu, 22 Jul 2021 | BUSINESS SALE
Fintel has announced the disposal of employee benefits platform Zest Technology to FPE Capital for an initial cash consideration of £10 million, a multiple of 22x trailing EBITDA. Depending on performance in FY21, the deal has the potential to rise by £1.5 million to £11.5 million.
Fintel said that the sale of the “non-core” business represented “excellent value for shareholders”. Fintel, formerly SimplyBiz Group, acquired Zest in 2013 when the company was called Staffcare. It was relaunched as Zest after the group undertook a three-year multi-million investment programme.
Discussing the sale, Fintel’s Joint Chief Executive Matt Timmins said: “We have successfully sold Zest Technology for an excellent price, allowing us to streamline the business in line with our strategy to focus on our core, and create funding headroom to support our future growth.”
The sale was announced at the same time as Fintel revealed its half-year results, in which group revenues rose 10 per cent to £31.7 million. Adjusted EBITDA increased 12 per cent in the first half of the year to £8.3 million.
Fintel rebranded from SimplyBiz Group earlier in the year, at which time it revealed that it was actively seeking strategic acquisitions to help grow the group. Regarding the group’s half-year results, Timmins said: "We are delighted to report significant strategic progress and strong trading across the first six months of the year.”
Timmins added: “Our ongoing and rapid digital acceleration means Fintel continues to grow with real momentum. We're now in an even stronger financial position and developing the business with focus, pace and agility.”
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