SimplyBiz (SBIZ), the AIM listed provider of compliance and business services to financial advisers and financial institutions in the UK, has agreed to acquire the fintech business Defaqto for £74.3 million.

Defaqto developed a proprietary, scalable and flexible IT platform and infrastructure, supporting the largest database of financial products in Europe. It provides unique information and insights to aid consumer and adviser purchase decisions.

SimplyBiz stated that the acquisition is expected to be earnings enhancing for the first 12 months of ownership, as well as provide strategic and synergistic benefits.

Shares in SimplyBiz rose 9% to 210p a share following the news

The acquisition is to be funded by raising a mixture of placings, a bank facility, and £3.1 million in cash.

Neil Stevens & Matt Timmins, Joint CEOs of The SimplyBiz Group, commented: “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.”

“Having long respected the Defaqto management team, we also recognise not just the strong strategic fit of the business, but also its cultural alignment. Defaqto is a business built upon industry leading talent and we look forward to working with our new colleagues as we continue to enhance services to financial intermediaries and product providers, and deliver value for shareholders.”

Zahid Bilgrami, CEO of Defaqto said: "We are absolutely delighted with SimplyBiz's decision to acquire Defaqto. It opens an exciting new chapter in our development as a leading financial information business, and we look forward to the many opportunities that being part of a larger Group will present.”

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