FPE invests in employee benefits software Zest

FPE said in a statement that the deal was sourced via direct discussions with vendor Fintel (formerly known as SimplyBiz), which had previously acquired a majority stake of 80% in Zest (then known as Staffcare) in 2013.

The deal is the 10th platform investment from FPE Fund II, which was the GP's first fund to be open to institutional investors. The fund held a final close in October 2017 on GBP 100m and intended to make 10-12 platform investments, according to Unquote Data.

The vehicle invests in UK-based technology, media, telecommunications, business services, financial services and energy services companies with enterprise values of GBP 20m-50m and turnover of GBP 5m-25m. The vehicle makes both growth and buyout deals.

The deal comes one day after FPE's sale of Microsoft Dynamics 365 partner TNP to US-based Node4, a portfolio company of Providence Equity Partners. The sale of TNP was the fourth exit from FPE Fund II to be completed within five months, the GP said in a statement.

Company
Zest is a software platform that assists businesses with the delivery and administration of employee benefits schemes. In addition, the platform allows employees to view and manage their benefits. The company posted revenues of GBP 3.6m in 2019, versus GBP 5.3m in 2018, according to its latest financial statement. Zest was founded in 2003 and is headquartered in Leatherhead.

People
FPE Capital – David Barbour (managing partner); Dan Walker (partner); Connor Trendell (investment director); Claire Sweet (investment manager).
Zest – Ray Sieber (CEO).
Fintel – Matt Timmins (group joint CEO).

Advisers
Equity – Dorsey Whitney (legal); CIL (commercial due diligence); HMT (financial due diligence, tax); Intechnica (IT due diligence); Continuum Ventures (management due diligence).
Management – Mazars (corporate finance); Weightmans (legal).
Vendor – Investec (corporate finance); Eversheds Sutherland (legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Buyouts
• UK / Ireland
• Technology
• United Kingdom