Disposal breaks up listed York software business
A YORK-BASED software company is breaking up as part of a £2.1m investment deal.
Access Intelligence, which has London and York offices, is a supplier of Software-as-a-Service (SaaS) solutions for reputation and operational risk management.
It has announced that it will dispose of its subsidiary, AITrackRecord Ltd to a new company founded by the current chief executive of the divisional group, David McNair Scott.
AITrackRecord will be absorbed into TrackRecord Holdings, a newly formed Hampshire-registered company.
TrackRecord recently received £2.1m in cash in return for 80% of the equity in the business. The owner is undisclosed.
Access Intelligence agreed to retain a 20% stake in TrackRecord, valued at £500,000.
It has also agreed that a deferred cash payment of approximately £100,000 will be payable when a similar amount is received by AITR from HMRC as a R&D tax credit for AITR’s business in the pre-acquisition period.
Joanna Arnold will also be joining the board of TrackRecord, a specialist fintech compliance management business, as a non-executive director and the AI’s representative.
For the year ended 30 November 2015, AITR contributed revenue to the Group of £700,000, an EBITDA loss of £400,000 and a loss before tax of £2.4m.
Joanna Arnold, CEO of Access Intelligence, said: “I am delighted that we have been able to secure a significant investment into TrackRecord via this new venture in return for reducing ourselves to a minority holding of 20%. We believe that with the new money coming into TrackRecord, the business now has the capital to expand and we are pleased to be part of the process.”
David McNair Scott, CEO of TrackRecord said “I am excited to be taking on the AITrackRecord business in partnership with Access Intelligence. We are well positioned to take advantage of the burgeoning market opportunity and have a unique capability to help our customers through this period of change driven by the UK’s regulatory mandate.”
