Bidder closes in on £145m takeover of fintech
THE Sottish fintech facing a £145 million takeover that staff have opposed amid fears about the impact on jobs has achieved a record performance on a key measure.
Nucleus Financial saw customers transfer £637m funds in March for administration on its investment platforms. The figure is the highest ever recorded by Edinburghbased Nucleus for gross inflows.
Chief executive David Ferguson said the company had reaped the rewards of its decision to maintain investment in its offering amid the challenges posed by the coronavirus crisis.
Stock markets plunged around the world after the crisis broke before bouncing back on hopes that vaccinations will fuel a strong global economic recovery.
“March was by far our best-ever month for inflows, a trend we’d hope to see continue as lockdown eases,” said Mr Ferguson.
Founded by Mr Ferguson in 2006, Nucleus has capitalised on historic changes in the pensions world, which have required people to take greater responsibility for saving for retirement.
The company received a number of takeover approaches last year.
In February, directors recommended shareholders accept a 188p per share cash offer from private-equity backed James Hay, which also offers platforms.
However, a People Representative Group of Nucleus employees said that the deal should be opposed amid “significant anxiety” about the impact on jobs at the firm.
It employs around 400
people, including 130 based in Glasgow.
In the document detailing the terms of its offer, which was published yesterday, Salisbury-based James Hay reiterated that there may be a moderate reduction in headcount at the enlarged group following the takeover.
It said a material number of Nucleus employees will transfer over the medium term to FNZ, which will provide platform technology for the enlarged group.
James Hay said in the document that it attaches great importance to the skills, experience and continued commitment of Nucleus’ management and employees.
The company said it intends to address the important points made by Nucleus’ PRG after its offer becomes unconditional with the full engagement and collaboration of Nucleus.
It said: “James Hay Holdings shares the view of the PRG that a successful Acquisition can only be achieved if the impact on people across the Combined Group is fully and meaningfully considered.”
James Hay ‘s offer requires the support of holders of 75 per cent of the shares in Nucleus.
Owned by the London-based Epiris private equity firm, James Hay has obtained irrevocable undertakings to support its offer from the holders of 55.88% of Nucleus shares. These include Mr Ferguson.
It has set 1pm on May 4 as the first closing date for acceptances.