skip to primary navigationskip to content
 

FreeAgent Acquired by RBS in £53m Deal

last modified Mar 28, 2018 01:36 PM
Accounting software specialist FreeAgent has been bought by a subsidiary of Royal Bank of Scotland for £53 million.

Royal Bank of Scotland has bought FreeAgent, an Edinburgh-based software accounting firm, after reaching agreement on a cash offer worth £53 million.

The announcement said RBS BidCo, a wholly-owned indirect subsidiary of RBS, will acquire the entire issued and to-be issued ordinary share capital of FreeAgent.

Under the terms of the acquisition, scheme shareholders will be entitled to receive 120 pence in cash for each FreeAgent share held, valuing the entire issued and to-be issued share capital of FreeAgent at approximately £53m.

FreeAgent is a provider of cloud-based ‘Software-as-a-Service’ accounting software solutions and mobile applications designed specifically for UK micro-businesses - sole traders and companies with fewer than 10 employees and their accountants.

RBS and FreeAgent have an existing commercial partnership, which, following a successful pilot, has seen expanding customer numbers.

The bank offers FreeAgent’s accounting software to its business banking customers and, following a rollout in the fourth quarter of 2017, more than 10,000 customers are signed up to use the FreeAgent solution.

RBS intends to operate FreeAgent as an operationally independent member of the RBS Group, retaining its existing management team and maintaining its current Edinburgh location.

The bank said it “values the entrepreneurial culture of FreeAgent and believes that by providing access to the additional financial resources and infrastructure of RBS and facilitating access to potential new FreeAgent customers, there is an opportunity to accelerate the growth ambitions of FreeAgent".

Ed Molyneux, chief executive of FreeAgent said: “The announcement represents the beginning of a new and exciting chapter for FreeAgent.

“Our vision is ‘making businesses happier and more successful by putting them in control of their finances’ and this moves us closer to that vision.

FreeAgent are members at ideaSpace West.

RSS Feed Latest news

LESSONS FOR A FOUNDER: Money Matters with Steve Ellis

Dec 10, 2019

Co-Director of Staffords, Steve Ellis, spoke at our last Building the Basics of a Business event about the financial aspects of starting your venture. He offers 10 pieces of practical advice to anyone who is in the early stages of a start-up. Staffords are Chartered Acountants who serve a range of businesses in and around Cambridge, from start-ups and individuals with small investment portfolios to large professional partnerships and companies with a turnover of £10 million. Steve’s top tip is to stay focused on the big picture and have controls in place to take care of the little stuff. If that can be monitored and checked quickly you shouldn’t ever need to look at the detail. Read on for more valuable advice …

LESSONS FROM A BUSINESS FACILITATOR: 5 Ways to a Successful Strategy

Oct 31, 2019

This month, business facilitator, Ludo Chapman, talks about 5 sets of recommendations and actions to help any aspiring entrepreneur or early stage start up to grow a business and untangle strategic problems. Ludo is founder of The Innovation Practice and has over 30 years’ experience ranging from launching and leading start-ups to running a mid-sized business. He started out by setting up a software training company before becoming CEO of a scientific instrument business, Grant Instruments. More recently he has been helping technology start-ups get funding, leading product launches and set up their sales channels, both in B2B and consumer markets.

View all news