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.
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.”
Announcement: Fintel Sells Zest Employee Benefits to FPE Capital