Results International has advised Staffcare on its acquisition by SimplyBiz

  • Service: M&A
  • Sector: Technology
  • Sub Sector: Enterprise SaaS
  • Engagement Type: Sell Side
Dec 2013
has been acquired by

Featured in the Sunday Times Tech Track 2012, Staffcare is an award-winning and market leading provider of SaaS-based employee benefits solutions and is experiencing high growth in a compliance-driven market.

SITUATION
Staffcare was founded by Phil Hollingdale in 2004 and has since developed a suite of award-winning HR software centred on two key products:

  • A benefits portal facilitating the administration and management of flexible benefits schemes and total reward communication for employers and employees
  • An auto-enrolment portal which enables employers to manage their pensions auto-enrolment process ensuring compliance with recently implemented regulatory obligations

In 2012, Staffcare was recognised as one of the UK’s fastest growing technology companies in the Sunday Times Tech Track 100, and has won numerous industry awards for its innovative, market-leading software.

OPPORTUNITY
With a high industry profile, a reputation for excellence and widely appreciated as a ‘technology company to watch’, Staffcare’s shareholders had received significant interest from strategic buyers and the private equity community alike. In parallel, the market is evolving rapidly driven by the biggest pension reform in a generation, auto-enrolment, which is creating a new and very large market opportunity for Staffcare. The combination of these factors led the shareholders to believe that timing was right to find a partner to help capitalise on the market opportunity, and provide liquidity for the venture capital and angel investors who had supported the company since its early days. The shareholders appointed Results International to advise on the various options and manage a competitive process to find the right partner.

OUTCOME
Results worked with the board to identify potential partners, both private equity and strategic, and explore the potential fit and opportunity. What was interesting is that Staffcare’s proposition touches on a number of different areas, including core HCM (human capital management) software, business process outsourcing, financial technology as well as financial services, and finding the right partner for Staffcare’s management as well as exiting shareholders was key. What became clear as the process unfolded was that the founder and senior management team at Staffcare were committed to the future upside of the company and not yet ready to exit in full. The transaction with SimplyBiz provides an excellent solution for all involved.

SimplyBiz is a UK-based provider of compliance and other services to over 5,000 financial advisers. The combination gives SimplyBiz’s client base access to the very best auto-enrolment solution, and ensures continued investment in Staffcare’s flexible benefits products and other innovative technologies, and positions the combined group for exciting future growth opportunities.

SimplyBiz has acquired c.80% of the shares with management retaining the balance, providing an attractive exit for the Venture Capital and angel investors and enabling management to continue to drive the business forward and participate in future growth.

We chose Results because we wanted an advisor who understood high-growth SaaS businesses and the associated valuation dynamics, knew the buyer universe…

Phil Hollingdale

Founder and CEO, Staffcare

Sector Related Deals

Aug 2021
has merged with
a Vespa Capital-backed company
Aug 2021
has acquired
Mar 2021
has been acquired by
Feb 2021
has been acquired by
Jan 2021
has invested in
Nov 2020
a division of QinetiQ
has been acquired by
a division of Constellation Software
Oct 2020
a Calculus Capital-backed company
has divested its mainframe RPA and terminal-emulation products to
a Bain Capital-backed company
Oct 2020
an Eight Roads and Kennet Partners-backed company
has been acquired by
Jun 2020
a division of QinetiQ
has been acquired by
a TA Associates-backed company