Latest news with #SoftwareCircle
Business Post
2 days ago
- 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
2 days ago
- 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.
Irish Independent
2 days ago
- Business
- Irish Independent
Karl Deeter sells his business for €9m
Software Circle has bought about 95pc of Artificial Intelligence Finance Ltd (AIF), which supplies software to mortgage and insurance brokers. An initial payment of €4.3m has been made, with a further €0.67m to be paid on the first anniversary of completion, and the remaining €4m over the next two years based on reaching certain performance targets. Mr Deeter, a well-known mortgage broker and prominent contributor to Irish media on personal finance issues, owns about half the equity in AIF, which employs 23 people and has offices in Dublin and Ennis. He will continue to be part of the company's operations. Gavin Cockerill, the chief executive of Software Circle, which is listed on the AIM exchange in London, said the purchase fits his company's strategy of buying high-recurring specialist software businesses. The deal will mean that Software Circle's annual group revenue is expected to reach £22m. It is funding the purchase of Deeter's company out of existing cash reserves. AIF's online platform was first developed by Mr Deeter in 2006, when he saw a gap in the market while operating his own brokerage. He incorporated AIF in 2020, with start-up finance received from Enterprise Ireland and other sources. Shareholders include Tom Kennedy of Hostelworld, Paul McKeon of Propylon, Harry Largey of Commodore, Patrick Joy of Suretank and Austin Ryan of AMCS. The business accelerated its expansion following last year's acquisition of Money Advice, making it Ireland's dominant software supplier to mortgage and insurance brokers as well as lenders and life companies. The company offers a range of tools, such as OA Mortgage, OA Lender and OA Insurer, which it says integrate directly with life insurers and financial institutions. When it was put to him by the Irish Independent that to go from start-up to sale in just five years represents unusually swift progress, he said: 'Sometimes people do it quicker, but we have built a profitable business and that usually isn't done in that period of time.' Accounts for 2023 show AIF generated €2.2m in revenue, and it is understood there was a further growth in revenue last year. 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. 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.' He praised the support that AIF received from its initial investors and the state agency Enterprise Ireland. '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.'
Finextra
2 days ago
- 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
Yahoo
11-02-2025
- Business
- Yahoo
Undervalued Opportunities On UK Exchange February 2025
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Operations: The company's revenue is primarily derived from its Graphics & Ecommerce segment (£9.53 million), followed by Health & Social Care (£2.89 million), Professional & Financial Services (£2.09 million), and Property (£1.58 million). Market Cap: £95.57M Software Circle has shown a positive turnaround by becoming profitable in the past year, reporting a net income of £1.25 million for the half-year ending September 2024, compared to a loss previously. The company's revenue primarily comes from its Graphics & Ecommerce segment (£9.53 million), and it maintains more cash than its total debt, with short-term assets exceeding both short and long-term liabilities. Despite stable weekly volatility and an experienced board, significant insider selling raises concerns. Additionally, the company is trading below estimated fair value but has seen an increase in its debt-to-equity ratio over five years. Click here and access our complete financial health analysis report to understand the dynamics of Software Circle. Review our historical performance report to gain insights into Software Circle's track record. Simply Wall St Financial Health Rating: ★★★★☆☆ Overview: Westmount Energy Limited is a venture capital firm focusing on seed capital for small to medium-sized companies, with a market cap of £1.08 million. Operations: Westmount Energy Limited does not report any revenue segments. Market Cap: £1.08M Westmount Energy Limited, with a market cap of £1.08 million, operates as a pre-revenue entity with no significant revenue streams reported. The company has less than one year of cash runway and remains debt-free, although it faces ongoing losses that have increased by 31.9% annually over the past five years. Despite its financial challenges, Westmount's seasoned board brings an average tenure of 13.2 years to the table, offering stability in governance. Recent earnings results showed a reduced net loss of £0.75 million for the year ending June 2024 compared to £2.97 million previously, reflecting some improvement in financial performance without shareholder dilution over the past year. Unlock comprehensive insights into our analysis of Westmount Energy stock in this financial health report. Assess Westmount Energy's previous results with our detailed historical performance reports. Simply Wall St Financial Health Rating: ★★★★★★ Overview: Alina Holdings Plc, along with its subsidiaries, is involved in the investment and rental of properties in the United Kingdom, with a market cap of £1.82 million. Operations: The company generates revenue of £1.11 million from its operations in the United Kingdom. Market Cap: £1.82M Alina Holdings Plc, with a market cap of £1.82 million and revenue of £1.11 million, has achieved profitability over the past year after consistent earnings growth averaging 33.8% annually over five years. The company is debt-free, eliminating concerns about interest coverage or cash flow adequacy for liabilities. Despite having low return on equity at 0.9%, Alina's financial stability is bolstered by short-term assets exceeding both short- and long-term liabilities significantly. The board's average tenure of three years indicates experienced governance, although management tenure data is insufficient to assess leadership experience comprehensively. Click here to discover the nuances of Alina Holdings with our detailed analytical financial health report. Explore historical data to track Alina Holdings' performance over time in our past results report. Unlock more gems! Our UK Penny Stocks screener has unearthed 443 more companies for you to here to unveil our expertly curated list of 446 UK Penny Stocks. Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up. Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Jump on the AI train with fast growing tech companies forging a new era of innovation. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AIM:SFT AIM:WTE and LSE:ALNA. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
