SimplyBiz acquires StaffCare in Beechbrook Capital-backed deal
Financial compliance services firm will add software company’s employee benefits solution to its own offering
Financial compliance services provider SimplyBiz today announced it has acquired software-as-a-service (SaaS) employee benefits provider Staffcare, for an undisclosed sum.
Founded in 2004 by current CEO Phil Hollingdale, Staffcare provides cloud-based services through which companies can administer and manage benefits for their employees, such as pensions and healthcare.
Staffcare has seen strong growth in the last two years, with the profitable company growing revenues by 50% and 100% respectively.
The current deal has seen SimplyBiz acquire approximately 80% of the business with CEO Hollingdale and head of global business and workplace savings, Graham Jarvis, retaining the balance.
SimplyBiz said Hollingdale and Jarvis would remain in their current positions as Staffcare’s range of services is added to SimplyBiz’s own offering.
Founded in 2002, SimplyBiz provides a holistic compliance and authorisation service for financial services companies, in exchange for 2.5% of their annual turnover.
The deal was backed by a mezzanine loan provided by mid-market private debt manager Beechbrook Capital.
Phil Hollingdale, founder and CEO of Staffcare, commented: “We are delighted with the acquisition by SimplyBiz. Their business, as well as ours, is built on a solid understanding of the market and the future opportunities that exist.
“With the financial backing of SimplyBiz and its understanding of regulation, we will be able to continue to invest in our products and services for our existing clients as well as provide solutions for the wider advisory market.”
SimplyBiz chairman Ken Davy added: “Staffcare is well positioned as the market leader in providing important technology to power ‘Flexible Benefits’ solutions for employers as well as many of the market’s independent Auto Enrolment solutions.
“We believe that Auto Enrolment and Work Place Savings will be key markets for many of the firms we serve and therefore it is important to them that we acquire the best and most innovative business in this field.”