xit2 completes management buyout
The new board of directors comprises two members of the existing management team; Paul Duckworth, managing director who becomes Chief Executive Officer and Andrew Bradbury, who remains operations director. The MBO which is the latest step of an agreement made when Duckworth joined the company in 2000 has been personally funded by the directors. Chief Executive Simon Henson moves to the position of chairman and relinquishes his day-to-day responsibilities to focus on long-term strategy and acquisitions. Tony Chambers, remains a non-exec director. David Gillam, a former director and one of the original founders of xit2 with Henson, has sold his shareholding to the management team and will have no further involvement in the company.
The company, established in 1996, has experienced a growth in turnover of over 400% in the past two years. xit2 systems are used to instruct approximately 20% of all valuations in the UK and support some of the largest firms in the mortgage market. With the introduction of Home Information Packs, xit2’s existing working developments with a number of major players for the provision of white-labelled solutions is expected to generate exponential growth for the group.
Duckworth has 16 years experience in financial services. A IFA manager with the Bradford & Bingley Group he then joined the Bank of Ireland group working within product design and distribution. He became Head of Sales at Bristol & West IMC prior to joining Winterthur Credit Suisse. As Group Product Development Manager for the UK he was managing the 4th largest producer of mortgages and the largest provider of SIPPs in the UK.
The MBO will enable xit2 to build on its position as a provider of outsourced process management utilising Internet based technology. xit2 design and build generic business-to-business web applications to enable mortgage lenders to optimise the management of outsourced non-core processes. The xit2 group of companies comprises The Valuation Exchange (VEx), the Repossessions Exchange [REx] and the Conveyancing Portal [CPL].
Paul Duckworth, managing director – xit2 said: “The xit2 group has experienced exceptional growth over recent years and the management team and staff are determined to build upon the achievements of the business to date and to take it on to even greater success in the future.
“We are delighted to have financed this buyout without the need for Venture Capital funding which demonstrates our financial strength, security and independence. The continuity of the existing management team will enable us to increase investment in our people, technology and service delivery for the entire group of companies.”
Simon Henson, Chief Executive – xit2 said: “I am delighted to be handing over the reins to a proven young management team who will take the xit2 companies through the next exciting stage of their growth cycle.”
Paul Trott Chief Valuer Cheltenham & Gloucester commented: “xit2 is a genuine success story. Their Internet technology delivers tangible benefits to firms right across the mortgage market. The management team has an excellent blend of experience, enthusiasm and commitment to ensure xit2 remains a market leader.”