Latest Limelight Health News
Sep 3, 2021
Image: © joyfotoliakid/Stock.adobe.com The Dublin-based software company raised €44m to continue its growth after acquiring two US companies in the previous fiscal year. The Irish fintech company Fineos has raised €44m by means of an institutional placing in Sydney. The company said proceeds will be used to provide working capital in supporting its research and development plans, alongside its growth opportunities. Fineos was founded in 1993 by Michael Kelly and develops software systems for life, accident and health insurance carriers. It serves businesses in Europe, North America, Australia and Asia Pacific. The company reported a total revenue of €108.3m in the fiscal year ending 30 June 2021, showing a 23.3pc increase from the previous year. Its workforce also grew in this period, with employee numbers increasing from 875 to 1,065. Acquisitions have been central to this expansion. Fineos purchased Limelight Health in August of 2020 for €63m. Limelight Health creates products for streamlining and automating sales and underwriting functions for group benefits insurers. This was then made available as part of the Fineos AdminSuite. This was followed this year by the acquisition of Spraoi, a provider of machine learning capabilities for the group life and employee benefits industry. Kelly and Anne O’Driscoll, the chair of Fineos, said in the company’s annual report that this second US acquisition was “smaller but also very strategic, and was funded from existing cash reserves”. Fineos sources 73pc of its revenue from the US, making it an important market. Its earnings before interest, taxes, depreciation and amortisation for the fiscal year was down to €5.2m from €13.3m. It attributed this to once-off acquisition costs and losses from foreign exchange movements. The company has also tweaked its operations for the pandemic, hosting the Fineos Virtual Exchange in May. The company said the event “explained the strategic benefits of cloud software-as-a-service and helped our clients, both current and prospective, understand the potential it offers to realise measurable business benefits of technology innovation that we are bringing via the Fineos platform offering”.