Latest news with #KarlDeeter
Business Post
05-08-2025
- Business
- Business Post
Karl Deeter's mortgage fintech sold to UK firm in €9m deal
Artificial Intelligence Finance, the mortgage and insurance broker fintech led by Karl Deeter, has been acquired by UK-based Software Circle in a €9 million deal.
Irish Times
05-08-2025
- Business
- Irish Times
Karl Deeter-led mortgage and insurance fintech sold to UK plc in up to €9m deal
An Irish mortgage and life insurance solutions fintech led by home loans expert Karl Deete r has been acquired by London-listed Software Circle in a deal worth as much as €9 million. The deal has involved an initial €5 million being spent for 95 per cent of Dublin-based Artificial Intelligence Finance (AIF), some €670,000 of which will be paid in a year's time. As much as €4 million will be payable in future for the remaining 5 per cent, subject to certain performance targets being achieved in 2026 and 2027, Software Circle said in a statement on Tuesday. AIF is better known under its trading name, OnlineApplication (AO), which is linked up to 60 mortgage brokers and five lenders as well as 200 life insurance intermediaries and two life companies. READ MORE The technology of OnlineApplication allows prospective homebuyers or loan switchers submit applications over their phones to a broker and then brokers can file these directly into the bank lending systems digitally. [ Karl Deeter-led OnlineApplication buys insurance tech firm Money Advice Opens in new window ] Early last year, AIF acquired insurance technology business Money Advice for an undisclosed sum. That firm, which was rebranded as AO Life and CRM, provides a full suite of client management, marketing, quotes, advisory and compliance tools. Mr Deeter, who owned close to half of AIF before the acquisition, will continue to lead the company following the transaction. Other shareholders included state agency Enterprise Ireland, Hostelworld co-founder Tom Kennedy and Patrick Joy, founder of storage equipment specialist Suretank. Mr Deeter said Software Circle's track record as a long-term software operator made it the right partner to take AIF to the next stage. 'This is about helping brokers become the number one delivery channel for digital financial services in Ireland,' he said. 'It's a vote of confidence in our team, our customers, and our vision.' Accounts for 2023 show AIF generated €2.2 million in revenue. However, Software Circle said the valuation reflects expected annual earnings before interest and tax (Ebit), with the acquisition anticipated to be earnings-enhancing and cash-generative in its first year. AIF was advised by Hugh O'Neill of accountancy firm Hogan and Associates. Software Circle was advised by UK-based Allenby Capital. The Irish mortgage market is expected to grow to €14 billion this year from €12.6 billion in 2024, according to PTSB. It is seen expanding further to €15.2 billion next year, according to the bank. Mortgage brokers account for close to half of all home loans written in the State. Irish home prices are expected to rise by a further 5 per cent over the next 12 months, amid ongoing supply shortages, according to a recent survey of estate agent members of the Society of Chartered Surveyors Ireland (SCSI). However, 60 per cent of those polled see prices levelling off soon, with a further 18 per cent saying that they have already peaked – after a dozen years of continuous growth. The Government, formed in January with a strong mandate to tackle the State's housing crisis, is widely expected to fall well short of its target for 41,000 homes to be completed this year as it eyes 300,000 new homes by 2030. The Central Bank of Ireland said last month that it was 'surprised' by the lack of progress and that it now estimates only 32,500 units will be delivered in 2025. Some 30,330 homes were built in 2024.
Finextra
05-08-2025
- Business
- Finextra
Software Circle acquires Irish AI fintech
Software Circle plc (AIM: SFT) is pleased to announce that it has acquired approximately 95% of the issued share capital of Artificial Intelligence Finance Limited. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. AIF provides software to mortgage and insurance brokers and lenders in Ireland. The total consideration of up to €9.0m will be satisfied in cash and is structured on a debt free/cash free basis. The acquisition is expected to be cash flow generative and earnings enhancing in the first year after acquisition. The initial consideration paid at completion was €4.33m, with deferred consideration of €0.67m to be paid on the first anniversary of completion. Up to a further €4.0m is payable to acquire the remaining approximately 5% of AIF's share capital, contingent upon the achievement of certain targets relating to the future financial performance of AIF (the "Earn-out"). Further information on the terms of the acquisition is set out below. About AIF AIF's Online Application platform was first developed in 2006 by Karl Deeter (a mortgage broker) after he saw the need for a cloud-based mortgage platform for his own brokerage company and others in Ireland. Since AIF's incorporation in 2020 and the acquisition of Money Advice in 2024, the company has become the leading software supplier to brokers and lenders in Ireland. AIF and its subsidiary, Lunar Technologies Limited, provide services to insurance and mortgage brokers as well as to lenders and insurers via a suite of products, OA Mortgage, OA Life + CRM, OA Lender and OA Insurer. Due to the breadth of functionality provided by Online Application, the business continues to experience strong growth and enjoys very strong customer reviews (G2 4.7/5). The platform integrates with leading financial institutions and life insurance providers. The vendors are majority shareholder and founder Karl Deeter (CEO), Enterprise Ireland and other minority shareholders (the "Vendors"). Karl Deeter will remain with the company post completion leading the business on a day-to-day basis. The unaudited combined proforma financial statements for AIF and its subsidiaries for the year ended 30 December 2023 together reported revenue of €2.2m, EBIT of (€0.01m) and closing net liabilities of €0.57m. After adjustments our valuation is based upon an expected EBIT of approximately €0.7m. Terms of the Acquisition The initial consideration of €4.33m was funded from existing Software Circle cash reserves. The deferred consideration of €0.67m and Earn‐out, if payable, of up to €4.0m, will be satisfied in cash. The Earn-out, payable to acquire the remaining approximately 5% of AIF's share capital, is dependent on AIF achieving certain earnings targets for calendar years 2026 and 2027. The Earn-out is subject to a put and call option agreement between the Company and the Vendors which will be exercised following the end of calendar year 2027 once the calculation of the Earn-out has taken place. Gavin Cockerill, CEO said: "Karl and his team have built a remarkable business and we're proud he chose Software Circle as the new permanent home for AIF. Together we plan to build on their momentum and solidify Online Application as the number one platform in its field. AIF fits squarely within our acquisition strategy - high recurring revenue, sticky vertical software, and a leadership team that shares our values and drive for success. This is a further example of our capital being invested into a business capable of delivering sustainable returns and, with Karl, one where we see a clear opportunity to expand its market presence." Karl Deeter commented: "We are really pleased to find a forever home with Software Circle whose strategy of acquiring and building software companies like ours is well established. We believe they will help bring the company to an even higher level of achievement, which in our case is about enabling brokers to be the number one delivery channel for digital financial services, and to be the number one firm in that space. The support from our initial investors and Enterprise Ireland has been great and this deal rewards that trust and investment. Our full team will remain in place, and for our customers it will be business as usual but with the added advantage of having a PLC owner who will help us deliver even more to our clients while moving us out of the 'start-up' space so we can tackle bigger opportunities." Outlook Our strategy remains focused on identifying and acquiring businesses that align with our criteria. Further strengthening our portfolio and driving sustainable growth. We are committed to maintaining our disciplined approach to acquisitions, ensuring that each addition is aligned with our culture, enhances our overall value proposition, supports our long-term objectives and maximises Operating Cash Flow Per Share. The Group has a current cash balance of approximately £4.0m and an available debt facility of £10m. Our M&A pipeline remains h
Irish Examiner
15-05-2025
- Politics
- Irish Examiner
Local councils need to take back control of building houses
I've been writing about the housing crisis for nearly three years, and one theme has remained constant: a generational divide between those who own homes and those locked out of the market, including yours truly. But recent developments suggest the Government now aims to align both groups in shared sacrifice. The Sunday Independent recently reported planning rules would be relaxed to encourage older people to 'rightsize' into smaller homes. The goal is to free up under-occupied housing stock by having older generations downsize, thus making room for younger families. While this marks a shift from the tired 'supply, supply, supply' mantra, pushing older people from homes they have raised their children and lived in for decades is a controversial solution. It sounds downright cruel. Still, the problem of under-occupation is real. According to the ESRI, more than 80% of people aged 65+ live in homes too large for their current needs. Eurostat defines under-occupied homes as those with more rooms than deemed necessary. In response, the Government has proposed the older persons housing financial contribution scheme which will see seniors sell their homes to local authorities or on the open market and move into smaller accommodation. Some may argue this infringes on private property rights and ignores the emotional attachment one may have to their home. But the State already owns many of these properties so shouldn't it be allowed to reallocate its housing stock in a crisis? Research by entrepreneur Karl Deeter in 2018 found more than 12,000 empty bedrooms in Dublin's council housing, with many four- and five-bedroom homes occupied by just one person. That situation has barely changed since then. So how did we get to a situation where elderly people live alone in large houses while young renters pay €2,000 a month for one-bed apartments with the kitchen beside the bed, while some families are forced to raise their children in a hotel? Simply put, the State, more specifically local councils, have ceased providing housing. Ireland once built vast numbers of council homes, even when the country was far poorer than it is today. The 1922 Million Pound Scheme provided grants for local authorities to build thousands of homes. In the 1930s, Fianna Fáil backed similar efforts, resulting in more than 100,000 social homes by the mid-1950s. These estates were well-planned and built with families in mind — three bedrooms, gardens, and solid design by renowned architects like Herbert Simms. Crucially, and relevant within the current context, when a tenant died, councils simply reallocated the home to another family. No one was evicted; no one was downsized. But, over time, the shift away from localised provision of housing shifted to centralised property allocation, reliant on market forces. In 1966, Ireland implemented its own version of Margaret Thatcher's 'Right to Buy', allowing council tenants to purchase their homes. By the early 1970s, homeownership had surged to 68%, and two-thirds of council homes became private without being replaced. By the 1980s, local authorities were disempowered. Fianna Fáil gutted housing budgets, abolished grants, and left councils without the means to build. Meanwhile, banks were deregulated and allowed to flood the market with cheap credit. The result was a boom in speculative development and buy-to-let landlords. Even at the peak of the Celtic Tiger boom in 2006 with the construction of 90,000 homes, just 6% were social housing. Piecemeal efforts to actually build social and affordable housing was done via so-called Part V planning regulations, which mandated 20% of zoned land for private development had to encompass social or affordable housing, which prolonged the time low-income people acquired homes, contextualising current long waiting lists. The stalled housing regeneration project on Kilmore Road, Knocknaheeney. Councils are severely under-resourced. They lack not only funds but also planners and tradespeople. Picture: Larry Cummins After the crash, things worsened. Instead of rebuilding the social housing system, the State leaned on private landlords. In December 2010, Fianna Fáil's junior housing minister Michael Finneran noted this policy overhaul when he stated the government would reduce 'reliance on construction and acquisition… to allow for a greater role for the Rental Accommodation Scheme and leasing' which, he claimed would, 'offer the most effective and efficient response to market realities and housing need'. In time, the Rental Accommodation Scheme and later Housing Assistance Payment (Hap) would cost taxpayers €1bn a year. Before this shift in 2014, rents were half their current price. Now, as the crisis deepens, the Government is proposing moving elderly people from their homes to make space. But doing so risks worsening intergenerational resentment. Rather than risking worsening social cohesion, councils need to be equipped with the tools necessary for housing delivery. UCC political scientist Theresa Reidy noted in 2018 that just 7% of public spending in Ireland is controlled by local authorities. In contrast, local governments in the past were the backbone of housing provision. According to Dr Lorcan Sirr of TUD, councils could build rural homes for under €300,000 — far cheaper than private developments costing up to €900,000. He argues decentralising housing provision would allow councils to build homes tailored to local needs, faster and more affordably. But councils are severely under-resourced. They lack not only funds but also planners and tradespeople. Ireland is short 350-400 planners, and many councils rely on private contractors due to a lack of expertise and manpower. There's enough zoned land for over 400,000 homes, yet approval takes years under a burdensome four-stage process. The Housing Commission has called for more resources to address vacancy, currently around 4,400 homes annually. Research by Cillian Doyle at Trinity College shows councils struggle to employ apprentices and skilled workers, relying instead on a slow, costly public procurement process. After the crash, many large firms offering apprenticeships went bust, leaving a skills vacuum now filled by financially strained small builders. Doyle has argued local authorities could be crucial in filling current shortages by guaranteeing a minimum number of places with specific criteria based on the number of homes needed in each local area. If the housing crisis is to be ameliorated, policymakers must restore local councils as central players in housing provision. They understand their communities better than detached officials in the Custom House and the Office of the Planning Regulator. They have the land but need the resources. Encouraging downsizing among the elderly may make statistical sense, but it is morally questionable. We cannot fix a housing crisis by forcing or incentivising people out of their homes. We must build publicly, locally, affordably, and at scale to meet the needs of local communities.
