SaaS Capital Portfolio Company, FreeAgent, Acquired by Royal Bank of Scotland
June 5, 2018
CINCINNATI, NEW YORK, SEATTLE, June 5, 2018 – SaaS Capital, the leading provider of Committed Credit Facilities to SaaS companies, congratulates portfolio company FreeAgent on its acquisition by Royal Bank of Scotland Group for $74 million.
FreeAgent, a multi-award-winning online accounting system specifically designed for micro-businesses, had the following to say about the acquisition:
“The combination of FreeAgent and RBS makes sense for our talented people, for our company’s growth prospects, and for the shareholders who have backed our journey so far,” said Andy Roberts, Chairman of FreeAgent. “For those shareholders, today’s offer represents a 5x multiple on our current revenues as well as a very substantial premium to our IPO price. For the FreeAgent team, it opens up a huge opportunity for them: a chance to target the entire RBS SME client base with a product designed with their needs in mind. It is for these reasons that I and my Board colleagues fully recommend the offer to shareholders.”
“Today’s announcement represents the beginning of a new and exciting chapter for FreeAgent,” said Ed Molyneux, Chief Executive Officer of 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. Having developed a strong strategic partnership with RBS and with over 10,000 of their business banking customers having already signed up to use FreeAgent’s accounting solution, we look ahead to the next chapter, where we will accelerate and further extend our technology capabilities as part of a bigger group. Our working together represents a really compelling opportunity and hence the Board is intending to recommend the offer which we believe makes both good strategic and financial sense.”
Headquartered in Edinburgh and with over 100 full-time employees, FreeAgent is a provider of cloud-based software-as-a-service accounting software solutions and mobile applications designed specifically for UK micro-businesses and their accountants. FreeAgent provides a mission critical and cost-effective solution used by these businesses. With its easy to use, intuitive software, FreeAgent’s offering significantly streamlines financial management, bringing together invoice and expense management to VAT and payroll. FreeAgent even enables users to automatically generate and submit their self-assessment tax return filings to Her Majesty’s Revenue & Customs (“HMRC”). Visit www.freeagent.com to learn more.
About SaaS Capital
SaaS Capital is the leading provider of long-term Committed Credit Facilities to SaaS companies. Focusing exclusively on the SaaS business model, SaaS Capital delivers faster decisions, more capital, and longer commitments. SaaS businesses have used SaaS Capital’s Committed Credit Facilities, instead of equity, to finance growth and create hundreds of millions of dollars in enterprise value without sacrificing significant ownership or control. Also, through its partnership with DH Capital, a boutique investment banking advisory firm, SaaS Capital can assist with M&A and capital raising services. SaaS Capital has offices in Cincinnati, New York, and Seattle. Visit www.saas-capital.com to learn more.
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