Fintel, a provider of technology for financial services, has sold two of its business units to a former director as part of a strategy to simplify its group operations. The Huddersfield-based software group has disposed of Gateway Surveying Services Limited, located in Derby, and APS Legal & Associates Limited, based in Essex.
The purchaser is Kairos Professional Services, a company owned by Neil Stevens, who left his role as joint chief executive of Fintel last year.
The board informed shareholders that these businesses are no longer central to the strategy of the firm, which is now focused on data-driven services that offer scalability and higher margins. The total value of the transaction is £1,000,000. This includes an initial cash payment of £600,000 and a further £400,000 subject to the surveying business meeting profitability targets during the first two years under the new ownership.
The two units being sold contribute a combined revenue of £11,200,000 and earnings before interest, taxes, depreciation, and amortisation of £900,000. Fintel stated that the move reduces operational risks and allows for better allocation of capital into the growth areas of the group.
“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,” said Matt Timmins, chief executive officer of Fintel plc.
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