Jumpstart targets new markets after French acquisition

Jumpstart, the Edinburgh-based research and development (R&D) tax specialist, is set to expand into new international markets after being snapped up by a French listed digital group.

Jumpstart MD Scott Henderson described the deal as a 'huge vote of confidence'. Picture: Lisa Ferguson

Lyon-headquartered ABGI Group, the consulting division of digital company Visiativ Group, has acquired a 93 per cent stake in Jumpstart for an undisclosed sum.

The tax credit firm’s managing director Scott Henderson described the deal as a “huge vote of confidence” and said it would allow the business to expand into the French, North American and Brazilian markets.

Jumpstart chairman and Scots advertising tycoon Jim Faulds will step down from the board, while Henderson and the management team will join ABGI and continue in their current roles, with the firm maintaining its existing brand.

Henderson will retain a stake in the business and two other managers will be offered the opportunity of acquiring a shareholding later in the year, according to Visiativ.

BGF, which invested £3.4 million in 2014, has exited its minority investment in the Scots firm.

Henderson said: “The acquisition is a huge vote of confidence in our approach to helping companies fulfil their innovation funding strategy.

“As the preferred supplier to the manufacturing sector through our partnerships with EEF and Scottish Engineering, many of our clients have multi-country R&D operations.

“Joining an international innovation management and finance consultancy firm will help broaden our R&D tax relief provision into France, Canada, USA and Brazil.”

Jumpstart, which provides financial assistance to around 700 clients, recently posted annual revenues of around £4.7m.

It has a team of 44 employees working from three locations, in Edinburgh, Manchester and Birmingham.

The transaction marks the second UK acquisition in seven months for the French group, which last summer bought Cambridge-based computer aided design specialist Innova Systems.

Visiatav, which posted 2017 revenues of €124m (£110m), said the latest agreement would enable it to reach “significant mass” in the UK, with full-year revenues of around €10m (£8.9m) and a headcount of 65.

It will seek to “develop efficient cross-selling” between its Innova Systems and Jumpstart business lines, serving some 1,700 clients in total.

Visiativ chairman and chief executive Laurent Fiard said: “We are very excited about this acquisition of a fast-growing player on the UK market, which will allow us to develop a second business line that has already earned its position in Visiativ’s offering.”

Jumpstart was founded in 2008 by Stuart Wyse, Don Galloway and Richard Edwards to provide a complete service in claiming R&D tax credits and patent box tax relief.