London based Geniac enters dead-pool following support withdrawal from Grant Thornton

 

London: Startup Geniac  is shutting down finally. The announcement came after it was revealed that that majority owner Grant Thornton, the international professional services company, has made the decision to shutter Geniac as of April 5th.  The company informed the customers at the beginning of this month that they’d need to find a new provider.

In July 2015 Geniac had announced that it had secured support from Grant Thornton UK in a deal worth up to £22 million in backing. The announcement was also spun as a funding story when in actual fact Companies House records show that Grant Thornton effectively became the owner of the startup via its own acquisition arm at the time of the investment.

According to a spokesperson for the company,  “Geniac’s founders, Eduardo Garcia and Mike Galvin, left the business to pursue other opportunities.”

The decision by Grant Thornton to pull its support of Geniac was not completely a surprising one. It’s not uncommon for acquisitions not to work out as well as hoped and regulatory filings show the startup made a loss of over £2 million in the year to June 2016 (it has yet to file accounts for 2017).

“We are sorry to announce that we have decided to close the Geniac service. We had high hopes for Geniac, but unfortunately, we are not making the progress we wanted, to be able to continue to provide the best service to our clients,” reads the email Geniac sent to our customers.
“Yes, we have we have made a decision to close Geniac. We will no longer be able to offer services to clients after 5 April 2018,” says a Grant Thornton UK spokesperson.
 

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