FreeAgent listed on AIM at the end of 2016 to raise £8m which gave the company a market capitalisation of between £31m to £35m. The deal is expected to complete in the second quarter of 2018.
Today’s announcement represents the beginning of a new and exciting chapter for FreeAgent. Our vision is making businesses happier...this moves us closer to that vision.Ed Molyneux, Chief Executive, FreeAgent
Andy Roberts, Chairman of FreeAgent, said: “The combination of FreeAgent and RBS makes sense for our talented people, for our company’s growth prospects, and for the shareholders who have backed our journey so far. For those shareholders, today’s offer represents a 5x multiple on our current revenues as well as a very substantial premium to our IPO price. For the FreeAgent team, it opens up a huge opportunity for them: a chance to target the entire RBS SME client base with a product designed with their needs in mind. It is for these reasons that I and my Board colleagues fully recommend the offer to shareholders.”
Ross McEwan, Chief Executive Officer of RBS said: “RBS is pleased to have reached an agreement on a recommended acquisition of FreeAgent. Since the beginning of our partnership, we have been impressed by FreeAgent and its technology and are excited by the enhanced offering we will be able to provide to our customers...”