Fintech group Fintel says it continues on the acquisition trail having added an events outfit to its roster of companies.
The Huddersfield-based firm announced the £2.3m acquisition of Owen James Events Ltd – a provider of engagement events in the financial services industry – in a deal including £700,000 of cash paid and a £1.6m contingent earnout clause in the first three years of ownership.
The move is intended to expand Fintel’s range of services and connect a “fragmented UK retail financial services market”. It the sixth acquisition for the firm, which also owns SimplyBiz and Deaqto, in the past year including the purchase of compliance and development training outfit Competent Adviser and financial advisers reviews site VouchedFor.
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Fintel talked up £12.7m of cash on its balance sheet, and £69m of headroom in its £80m revolving credit facility as it eyes future deals to grow its services. It came as the firm issued a year end trading update showing total organic core revenue fall 2.5% in 2023 to £55.1m – a movement it said was down to changes in the accounting treatment of its largest software reseller agreement.
The firm said it had managed to largely offset difficulties in the housing market thanks to growth in its software revenue and licence sales. Whilst mortgage related activities saw a 21.2% revenue decline during 2023, Fintel said the segment remained profitable and is ready for an uptick in the housing market.
Matt Timmins, joint CEO of Fintel plc, said: “In 2023 we made significant strategic progress, increased our scale, and reach through the acquisition of four businesses to our platform, and delivered a resilient financial performance in line with expectations. We have demonstrated continued evidence of our capacity and ability to drive organic growth, source and execute complementary acquisitions, and invest in our technology and data propositions.
“In line with our strategy, we are completely focused on consolidating a fragmented market to enhance our scale, proposition, and IP, as we continue to inspire better outcomes for UK retail financial services. Today, we welcome yet another market leader in Owen James Events, a business with huge potential, and our sixth acquisition in 12 months.
“We are confident of delivering further progress in the year ahead as we continue to scale our proposition, realise our very active M&A pipeline and invest in our service and technology platform, with our growth underpinned by recurring incomes and positive structural market drivers.”
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