Fintel (FNTL) has agreed the disposal of Gateway Surveying Services and APS Legal & Associates for total cash consideration of up to £1 million, as the company sharpens its focus on higher-margin software, data and services activities.
The transaction marks a key step in Fintel’s strategic portfolio simplification, following a review that identified both businesses as non-core to its scalable, recurring revenue model. Together, the assets generated about £11.2 million of revenue and £0.9 million of EBITDA in 2025, with a margin of about 8%, well below the group’s 30% adjusted EBITDA margin.
Importantly, the disposal removes operational complexity and risk, including the need to insure about 500,000 historic property valuations and manage about £11 million of probate client money. In addition, the deal is expected to reduce the group’s workforce by about 16%, lowering fixed costs and simplifying operations.
The consideration includes £0.6 million in upfront cash and up to £0.4 million contingent on future profitability targets. Fintel also retains upside exposure through an anti-embarrassment clause on any onward sale within three years.
The buyer, Kairos Professional Services, is controlled by former Joint CEO Neil Stevens. However, the board confirmed the deal was negotiated on an arm’s length basis and deemed fair and reasonable under AIM rules.
Fintel’s Chief Executive Officer Matt Timmins said: “We are pleased to have completed this disposal, which represents an important step in the strategic portfolio simplification of Fintel, enabling us to focus on our two divisional growth engines of Software & Data and Services. The disposal also reduces complexity in the Group, removes significant operational risks, whilst supporting improved capital allocation, and enabling focused investment in higher growth, higher margin areas of the Group.”
View from Vox
This looks like a clean strategic reset. By exiting lower margin, operationally complex units, Fintel is doubling down on its higher quality, recurring revenue model. While the headline consideration is modest, the real value lies in improved margins, reduced risk and sharper capital allocation going forward.