Private equity firm FPE Capital has bought employee benefits platform provider Zest Technology for an initial £10m, with a potential further £1.5m due depending on revenue delivered in the full 2021 year.
The firm said its sale was as a result of the renaming and “strategic refocus” by previous owner SimplyBiz, which rebranded to Fintel in March.
In a statement, SimplyBiz Group said the sale value was 22 times Zest’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the 12 months to 30 June 2021.
“The board believes this represents excellent value for shareholders for a non-core asset,” it said.
Matt Timmins, joint CEO of The SimplyBiz Group, added: “We have successfully sold Zest Technology for an excellent price, allowing us to streamline the business in line with our strategy to focus on our core, and create funding headroom to support our future growth.”
Zest CEO Ray Sieber said the firm was delighted to be partnering with FPE, which had expertise in successfully scaling software as a service (SaaS) businesses.
He added: “The recent strategic refocus by Fintel on its core traditional businesses presented the opportunity to find a new partner that would support and propel the business through its next stage of growth, allowing us to take hold of the many opportunities that are in front of us in the market.”
“Their experience of international expansion is also highly impressive and we are excited to be working with such a committed partner to grow Zest further,” Sieber continued.
“This is another huge milestone in our journey and a fabulous opportunity to grow the business. It’s also created a fantastic opportunity for our dedicated and talented team of people who will be crucial to help us achieve that growth and will undoubtedly create new opportunities and challenges for everyone.”
