Private equity vehicle HgCapital has become the majority shareholder in adviser technology firm Intelliflo.
The Kingston-based firm was previous owned by three founding shareholders, including chief executive Nick Eatock, and around 40 staff. Eatock will remain in his role and retain a “significant interest” in the firm. Another founding shareholder, propositions director Akeel Ahmed, will retain a stake alongside smaller staff shareholders.
The other founding shareholder, managing director Jamie Coats, has sold his shareholding and is leaving the firm.
Intelliflo would not disclose how much the majority stake in the business has been sold for.
Eatock completed a management buyout of Intelliflo from IFA group Millfield in early 2005 for £250,000. This followed the merger of Millfield and Inter-Alliance, which previously owned the technology company, in October 2004.
Eatock says: ”With the support of an expert investor, we intend to continue to invest and deliver even better products for our customers in the post-RDR era. We have ambitious plans for the next five years and remain committed to making sure our customers have the benefit of market leading software during a period of substantial change in our industry
The investment has been made by HgCapital’s Mercury Fund which targets European software and other technology companies.
Intelliflo recently created a new commercial division and bolstered its senior management by hiring former Skandia head of proposition marketing Peter Jordan as marketing director. Ex-Skandia sales director Dave Chessell joined late last year to head the sales team. The firm more than doubled its pre-tax profits for 2012 from £1.5m to £3.6m.
Finance & Technology Research Centre director Ian McKenna says: ”You have to admire people who can build a business and create real capital value. I am sure lots of people will be trying to find out the price the deal was done for as it could be an important benchmark for future transactions in the market.”