SimplyBiz scraps floatation plans

Simplybiz has postponed plans to raise funds through the sale or floatation of a 60% stake in the business.

Related topics:  Finance News
Rozi Jones
5th May 2015
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In a statement earlier this year, Simplybiz confirmed it was working with corporate finance advisers BDO to consider future options.

SimplyBiz has previously stated that it would consider an initial public offer on the Alternative Investment Market, or the sale of a stake in the business to a trade buyer or private equity fund.

However managing director Neil Stevens has today announced that he is not planning to explore an IPO in the near future, and is instead looking at alternative funding models.

Currently, 60% of the company is owned by chairman Ken Davy, while the rest of the company's shares are owned by SimplyBiz's management and their families. The firm is estimated to be worth around £100m.

Simplybiz was founded in 2002 and currently provides financial services to approximately 2,100 firms.

SimplyBiz managing director Neil Stevens said:

"The board of directors have for some time been exploring a wide range of options for the next phase of growth at SimplyBiz.

"We have had a number of serious approaches over the years, even more so in the last six months, and particularly from Private Equity. In addition we have been contacted by organisations offering other funding models and also those organisations that assist companies in making a public listing.

"We are still exploring our options and at this stage we have not asked anyone to take a proposal forward. A vibrant and innovative market for growth funding has highlighted some other options we had not particularly considered prior to looking at this properly and we are still working on some of these ideas.

"We are excited about our business and the management team are committed to delivering the next phase of growth for SimplyBiz. We are determined to ensure that we build for the long term; putting our customers, management and staff first, rather than ceding control to an external shareholder.

"In the final analysis we believe that given the extraordinary amount of change and opportunity currently available in the financial services sector that we are better able to serve our customers and clients as a totally independent business.

"Specifically as regards an IPO, whilst we have not ruled it out completely at some time in the future, we do not anticipate exploring such an event for at least a couple of years."

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