An Edinburgh-based research and development tax specialist has been acquired by a French digital group. The acquisition signals the beginning of a significant expansion into international markets.
The French company, headquartered in Lyon, has taken a 93 per cent stake in the Edinburgh firm. This move is expected to open new opportunities in France, North America, and Brazil for the R&D tax specialist.
Acquisition Details
Edinburgh-based research and development tax specialist Jumpstart has been acquired by ABGI Group, the consulting division of Visiativ Group. The acquisition involves a 93 per cent stake in Jumpstart, although the financial terms have not been disclosed.
According to Managing Director Scott Henderson, this partnership will enable Jumpstart to broaden its services across multiple countries, including France, Canada, USA, and Brazil. The existing management team will retain their roles, ensuring continuity in the company’s operations.
Strategic Expansion
Jumpstart plans to leverage this acquisition to enter new international markets, expanding significantly beyond its current operations in the UK. Henderson highlighted that this move is a huge vote of confidence in their approach to helping companies with their innovation funding strategies.
Chairman Jim Faulds is stepping down from the board, marking a notable change in the company’s governance. Nevertheless, the company will continue to operate under the name Jumpstart, maintaining its brand identity.
Market Presence and Future Plans
With annual revenues of around £4.7 million, Jumpstart is poised to make a substantial impact in the new markets it is entering.
The company’s strong presence in Edinburgh, Manchester and Birmingham, backed by a team of 44 employees, provides a solid foundation for this ambitious expansion.
The acquisition by ABGI Group aligns with Jumpstart’s long-term strategy to become a global leader in R&D tax relief services.
BGF’s Exit
BGF, an investor that put £3.4 million into Jumpstart in 2014, has now exited the business. This marks the end of a significant chapter in Jumpstart’s growth journey.
The investment from BGF has been instrumental in scaling Jumpstart’s operations over the past few years. Their exit coincides with this new phase of international expansion.
Client and Sector Impact
Jumpstart’s clients, particularly those in the manufacturing sector, stand to benefit from the enhanced services brought about by this acquisition.
Through partnerships with organisations like EEF and Scottish Engineering, Jumpstart has been a preferred supplier for many clients with multi-country R&D operations.
Joining forces with an international consultancy firm will enable Jumpstart to offer more comprehensive R&D tax relief services to its clients in various sectors.
Leadership Changes
Despite the acquisition, the management team at Jumpstart will remain in place, providing stability as the company expands.
Henderson’s leadership is seen as crucial in navigating this new phase, given his experience and understanding of both the company and the R&D tax relief sector.
Industry Perspective
The acquisition is seen as a strategic move within the industry, reflecting the growing importance of R&D tax incentives globally.
Conclusion
The acquisition of Jumpstart by ABGI Group marks a significant milestone for the Edinburgh-based company. The move not only enhances Jumpstart’s capabilities but also positions it for success in new international markets.
This acquisition is poised to catalyse Jumpstart’s growth and expansion into new international markets, making them a formidable player in the R&D tax relief sector.
With continued leadership from its experienced management team, Jumpstart is well-positioned to leverage this new partnership for long-term success.