Financial services technology provider Fintel has sold two of its businesses to a former director as part of a strategy to simplify its operations and focus on core growth areas. The Huddersfield-based software and services group disposed of Derby-based property valuation firm Gateway Surveying Services Limited and Essex-based will-writing and probate specialist APS Legal & Associates Limited to Kairos Professional Services, owned by Neil Stevens, who departed Fintel as joint CEO last year.
Strategic Portfolio Simplification
Shareholders were informed that the two businesses were "no longer core" to Fintel's software and data-driven strategy, which prioritizes scalability and higher margins. The deal, valued at £1 million, includes a fixed cash sum of £600,000 and an additional £400,000 contingent on Gateway Surveying Services achieving profitability targets within the first two years of Kairos' ownership. Together, the two firms contributed combined revenue of £11.2 million and EBITDA of £900,000.
CEO Comments
Matt Timmins, chief executive officer of Fintel plc, said: "We are pleased to have completed this disposal, which represents an important step in the strategic portfolio simplification of Fintel, enabling us to focus on our two divisional growth engines of software and data and services. The disposal also reduces complexity in the group, removes significant operational risks, whilst supporting improved capital allocation, and enabling focused investment in higher growth, higher margin areas of the group."
London Stock Exchange Update
In its update to the London Stock Exchange, Fintel stated: "The board believes that the disposal represents an attractive opportunity to reduce complexity in the group, remove significant operational risks and to sharpen Fintel's focus on its core data and technology and distribution platforms serving the UK retail financial services market. The transaction also supports improved capital allocation, enabling focused investment in higher‑growth, higher‑margin areas of the group."
The company added: "The board of Fintel believes that both businesses will be well-positioned to continue to grow and develop under the purchaser's ownership, together with their existing management teams who will remain with the businesses."
