INSURERS Standard Life yesterday sealed a £24million deal to buy software firm Vebnet. The Edinburgh Alternative Investment market-listed business provide specialist software for employee benefit schemes.
Vebnet chief executive Gerry O'Neill, 47, will pocket around £2.8million from the sale of the business he founded in 2000. His school friend Sandy Nairn, of investment company Edinburgh partners, who co-founded the business, will receive a similar windfall. Dad-of-three O'Neill was an executive with Royal Bank of Scotland and also helped to launch Tesco personal finance before leaving to launch the first online mortgage broker emfinance.
He was ousted by his backers but went on to launch Vebnet with funding from US private equity firm Cross Atlantic Partners. Vebnet are well established in the UK employee benefits and online reward market and have developed business activities in Europe and Asia.
They have a corporate client base of 145 and 293,000 employees use their services. They employ 78 staff, including 56 in Edinburgh and will continue under their own brand.
Standard Life chief executive Sandy Crombie said the combination of the two companies will provide significant opportunities in the corporate market. He added: "This is a rapidly evolving market and an increasingly important part of our business. "There is a strong strategic fit between our businesses and this will give Standard Life the opportunity to work with the Vebnet team and create additional value for shareholders."
O'Neill said the acquisition would create exciting opportunities for customers and staff as Vebnet would thrive within a larger organisation and grow faster than it could as an independent company.
Read Article at: The Daily Record
