SimplyBiz , headed by industry veteran Ken Davy, bought ratings and adviser fintech provider Defaqto for £74.3m and says the acquisition has significantly increased the scale of the group.

In a trading update the company said: “ The integration of Defaqto has been successfully completed and the enlarged group now serves over 5,800 intermediary firms and over 350 financial institutions, significantly increasing the scale of the group.”

Group debt was £27m and “in line with management expectations” and the group has managed to pay £7m of debt following the acquisition of Defaqto, which was bought with a mixture of debt and equity raising.

Matt Timmins, joint CEO of the SimplyBiz Group, said: "We are delighted to have successfully completed the acquisition and integration of Defaqto and welcome these new colleagues into the SimplyBiz group. The acquisition significantly expands our customer base and breadth of proposition, whilst enhancing the group's strong and sustainable profit margins."

 "Trading in the group has continued in line with management's expectation and the group's cash generative model has enabled the group to repay £7m of debt in the post-acquisition period, further deleveraging the group."

"The group's  consistent and recurring income model, and strong forward revenue visibility, continues to provide the board with confidence and optimism as we enter 2020." 

The group has more than 500 staff following the Defaqto takeover.

The full results will be published in March.