Royal Bank of Scotland is reportedly acquiring accounting software platform FreeAgent in a deal worth around £53m.
RBS has made a cash offer to purchase the entire issued and to be issued ordinary shares in FreeAgent, according to a report to RTTNews. The deal will see the bank buy shares for 120 pence a-piece, totalling around £53m, it said.
UK-based FreeAgent is an accounting software developer that helps companies with the expenses, invoicing, cashflow and tax processes. Through the solution, clients can send and track invoices, upload expenses through a picture, automate VAT returns, file self-assessment and corporation taxes, manage all cashflow, and automatically import banking transactions.
There are a range of other offerings available to accountants and payroll teams to simplify their tasks. The two companies already have a partnership, with the RBS’ business banking customers having access to the accounting software, with there being 10,000 clients signed up for the solution, the article states.
Following the transaction, FreeAgent will continue to operate independently and retain its Edinburgh headquarters, it said. FreeAgent also ensures that businesses stay compliant with the new GDPR regulation, which is due to launch in May.
GDPR will impose strict controls on how all organisations collect and process personal data within the EU and/or personal data of EU citizens. The regulation outlines six key principles for organisations that process individuals’ personal information, meaning all data has to be processed lawfully, fairly and transparently, and is collected for specified, explicit and legitimate purposes.
It also means data has to be adequate, relevant and limited to what is necessary for processing, as well as accurate and kept up to date, and retained only for as long as necessary. processed in an appropriate manner to maintain security.
Under the terms of GDPR, FreeAgent said it will only ever collect, store and process personal data (e.g. contact details, bank account details, IP addresses. It may also potentially store, but only if added by the user, National Insurance, passport, payroll and PAYE numbers). It also claims to not collect, store or process data that is labelled as sensitive under GDPR.
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