Simplybiz acquires Staffcare as it targets financial advisory market

YORKSHIRE-BASED The SimplyBiz Group has acquired a majority stake in software provider Staffcare in a deal structured and funded by Yorkshire advisers.

The deal, for an undisclosed sum, sees Huddersfield group SimplyBiz, headed by chairman Ken Davy, further strengthen its position in the compliance and business support services sector as it aims to become the leading provider to financial advisers in the UK.

The corporate finance team at accountancy and business advisory firm BDO were lead advisers to the management team at SimplyBiz.  M&A partner Tim Clarke led the team, with support from James Croxen and Natasha Hartley in the Leeds office.  Yorkshire Bank provided funding for the deal with Ruth Cherry, Mike Selina and Ian Marshall representing the bank. Beechbrook Capital also provided mezzanine finance.

Simplybiz group finance director Sarah Turvey led the team internally on the deal while Staffcare founder and CEO, Phil Hollingdale, and global business head, Graham Jarvis, will continue to run the business following its acquisition, with increased backing from SimplyBiz.

From its headquarters at John Smith’s Stadium at Huddersfield Giants’ ground – where Ken Davy, the former Huddersfield Town chairman, is also chairman – SimplyBiz employs 165 people and provides services to more than 5,000 financial advisers and IFAs across the country. 

Staffcare, the SaaS (software as a service) provider which is based in Leatherhead, Surrey, provides software and support to power flexible benefits and auto-enrolment solutions to many of the UK’s largest employee benefit consultants. 

Ken Davy, chairman at SimplyBiz, said: “Staffcare is well positioned as the market leader in providing important technology to power flexible benefit and auto-enrolment solutions for employers. We believe these will be key markets for many of the firms we serve and therefore it was important to us that we acquired the best and most innovative business in this field. For Staffcare’s existing client base, we will ensure continued investment in product development to ensure they have the very best software available in the market.”

Tim Clarke, partner at BDO in Leeds, commented: “This deal epitomises a great strategic fit and provides SimplyBiz with a fantastic opportunity to bolster its growth ambitions. Staffcare’s offering and experience in auto-enrolment solutions, which represents the biggest pension reform in a generation, will be a key growth market for the business.

“SimplyBiz is leading the way for this highly regulated, compliance-heavy sector. Its clients have the reassurance they are dealing with the best people and working with the best systems out there. For the industry going forward, we can expect to see more consolidation in the year ahead, as large players like SimplyBiz continue to capitalise on the opportunities the market presents.

“We are delighted to have been involved in advising another great Yorkshire business on its drive for growth. SimplyBiz and its management team are a fantastic local success story; one that BDO is proud to be associated with.”

Ruth Cherry, business development director at Yorkshire Bank in Leeds, added: “Yorkshire Bank has a long-standing relationship with SimplyBiz. Management have a great track record of strategic partnerships and the commercial rationale for the acquisition of Staffcare was compelling, so we were keen to facilitate the transaction.”