Significant move for equity house
Dunedin takes stake in £44m fintech funding deal
Dunedin, the Edinburgh-headquartered private equity house, has invested in the £44 million funding of a fintech business involved in next generation payment systems.
Global Processing Services, based in London and Newcastle, has created software for digital and challenger banks, fin-techs and other financial institutions.
The deal is the third largest fin-tech financing in the UK this year and Dunedin will take a significant stake in the business.
GPS has more than 100 clients including Starling Bank, Revolut, Pockit, Volt Bank, Loot, Stocard, Glint, Osper and Curve. The company has about 150 employees.
Oliver Bevan, partner at Dunedin, who will sit on the board alongside partner Dougal Bennett, commented: “GPS is positively disrupting a multi-billion-pound industry and is well placed to continue leading the way following the rise of other highly successful fin-tech companies.
“We are really excited to be investing in GPS which represents a significant opportunity for Dunedin to utilise its experience in taking UK companies with a technological edge and enabling them to shine on the international stage.
“We will support the management team and founders to help GPS to become a truly global leader in this niche market.”
Suresh Vaghjiani, managing director at GPS, added: “GPS has experienced exceptional growth over the last few years and we have always prided ourselves on the diverse fin-tech customer base that we service.
“This partnership with Dunedin will see GPS accelerate even further.”
Tony Kerr, co-founder of GPS, said: “The partnership with Dunedin is another important milestone for GPS and we look forward to working with them to take the next step on our exciting growth path. The investment will give us extra firepower to facilitate continued growth, strengthen our offering and expand our global footprint.”
The investment in GPS coincides with a high level of transactional activity for Dunedin and is the third financial services deal that it has completed in two years, following its investments in Kingsbridge and Alpha.
Dunedin has also recently completed three successful exits – Blackrock, Alpha and Kee Safety – generating a total return of £231 million for its investors within a three-month period. Dunedin is currently investing its £300 million Fund III.
Jessica Hardy, Investment Manager, and Andrew Davidson, assistant director at Dunedin supported Oliver Bevan and Dougal Bennett on the deal.
Advisers to the transaction were: PwC – Corporate Finance; Dickson Minto – Legal; Consult Hyperion – Technical DD; Edgar Dunn – Commercial DD. FT Partners acted as exclusive strategic and financial advisor to GPS.