SimplyBiz is a provider of compliance services, while Defaqto is a technology company which rates 21,000 financial products and funds, licensed by 230 brands.
SimplyBiz Group has agreed to purchase Defaqto owner Regulus Topco for £74.3m.
SimplyBiz is a provider of compliance services, while Defaqto is a technology company which rates 21,000 financial products and funds, licensed by 230 brands.
Neil Stevens and Matt Timmins, joint chief executives of The SimplyBiz Group, 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.”
Defaqto earned £5.3m before tax in 2018, an increase of 7% year-on-year.
The purchase is being supported by a £29.1m share placing, the issue of £7.5m of shares to the vendors and about £37.5m from new bank facilities, as well as £3.1m of existing cash resources.
