Irish fintech OnlineApplication acquired by Software Circle in €9m deal

Irish fintech company Artificial Intelligence Finance (AIF), led by Karl Deeter, has been acquired by London-listed Software Circle in a deal worth up to €9m. The deal includes an initial €5m payment for 95% of AIF, with up to €4m payable in the future based on performance targets. AIF provides mortgage and life insurance solutions to brokers and lenders, and the acquisition is expected to enhance earnings and be cash-generative in the first year.

Title: Irish Fintech Company Artificial Intelligence Finance Acquired by Software Circle

Software Circle PLC (AIM: SFT), a London-listed software company, has acquired a majority stake in Artificial Intelligence Finance Limited (AIF), an Irish fintech company specializing in mortgage and insurance solutions for brokers and lenders. The deal, valued at up to €9 million, includes an initial payment of €4.33 million for 95% of AIF, with the remaining 5% to be paid contingent on future financial performance. The acquisition is expected to enhance earnings and be cash-generative in the first year.

AIF, led by founder Karl Deeter, will continue operations with its current team. The company's software integrates with major financial institutions, supporting continued growth. This acquisition aligns with Software Circle's strategy of acquiring high-recurring, specialist software businesses.

Gavin Cockerill, CEO of Software Circle, commented on the acquisition, stating, "This move fits our strategy of acquiring high-recurring, specialist software businesses. With this deal, annualised group revenue is expected to reach £22 million."

The acquisition is part of a broader trend in the fintech industry, where companies are leveraging artificial intelligence to streamline processes and improve customer experiences. AIF's technology is particularly well-suited for the mortgage and insurance sectors, where automation and data analysis can significantly enhance efficiency and accuracy.

The acquisition is expected to be cash flow positive and earnings enhancing in its first year, with the initial payment already made. The remaining payment will be contingent on achieving certain performance targets.

References
[1] https://www.proactiveinvestors.co.uk/companies/news/1076088/software-circle-acquires-majority-stake-in-irish-fintech-1076088.html