GCITruFin subsidiary Oxygen Finance acquires bidstats.uk for £0.5m
() , a fintech-focused holding company, announced that its subsidiary Oxygen has entered into a binding agreement to acquire bidstats.uk and all associated assets.
bidstats.uk offers a suite of tools bundled into freemium and subscription services that help businesses win public sector work. The site has more than 50,000 users of its free subscription services and c. 500 paying subscribers.
Oxygen will purchase bidstats.uk and related assets for a total cash consideration of £0.5m (including a £0.1m earn out) from Axiom P1. Prior to Axiom's ownership, the site and its assets were owned by VC-backed start-up Opportuni AI.
The purchase will be funded from Oxygen's cash balances and is expected to be earnings accretive on an ongoing basis from year one.
"We are delighted to complete this bolt-on acquisition for Oxygen. bidstats.uk will level the playing field, ensuring potential suppliers, big and small, have complete visibility of public sector work. Local authorities will secure best value for their communities through transparent and efficient trading processes for buyers and suppliers alike" commented Ben Jackson, CEO of Oxygen Finance.
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A major acquisition for TruFin's Oxygen Finance, a Birmingham-based early payments programme provider. The acquisition complements Oxygen's existing Insights Services data products, providing valuable cross-selling opportunities. Additionally, the deal positions Oxygen to extend its services to thousands of small and medium sized businesses alongside its existing private sector clients and government buyers.
In its most recent interim results for H1 2023, TruFin detailed significant growth for Oxygen with revenues up 8% to £2.7m for the subsidiary, driven by growth in its core UK Early Payments market, up 22% year-on-year. EBITDA remained broadly unchanged at £0.3m as Oxygen made substantial investments in its platform, which resulted in c. 30% of its EP clients purchasing 2 or more products in H1 2023.
TruFin remains well funded with £7.8m in cash as of August 31 2023 after a successful fundraise in June.
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