Ratings agency Defaqto is to be acquired by support services provider SimplyBiz for £74 million, it has been announced this morning.
The deal will be done by The Simplybiz Group acquiring the share capital of Defaqto’s owner, Regulus Topco.
Huddersfield-based Simply Biz Group provides compliance and business services to financial advisers and financial institutions in the UK, supporting over 3,700 professional firms.
Defaqto will still operate as an independent business within the group out of its offices in Haddenham, Buckinghamshire. Defaqto’s management and chief executive Zahid Bilgrami, will also remain in place.
Joint chief executives of The SimplyBiz Group, Neil Stevens and Matt Timmins (pictured), said the deal would ‘enhance our proposition to the banking and general insurance sectors’ while it also invests in its fintech platform.
Bilgrami said he hoped the deal would speed up the development of new technology.
SimplyBiz Investment Services last year launched its own adviser software, Centra, which runs on Defaqto technology.
The service plugs into Intelliflo at the back end and is free for SimplyBiz IFAs.
For the past nine years SimplyBiz has offered fee licences for Distribution Technology’s (DT) Dynamic Planner tools for its advisers as well as training and support for the software. Dynamic Planner is a risk profiling and asset allocation software provider.
However, as New Model Adviser reported in December, the support services provider has warned the contract for Dynamic Planner finishes on 21 May 2019, and it would be 'working with DT to explore the options available’.