Software firm continues acquisition drive as it lines up for £13.5m deal
Proactis Holdings, the global specialist speed control software provider, has entered negotiations to acquire a Netherlands-based business for £13.5m (€15.2m).
The Wetherby-based firm, which last year completed a series of acquisitions, is looking to acquire Esize Holdings BV, a Netherlands based procurement software business.
The £13.5m (€15.2m) will comprise an initial consideration of €14.2m and a deferred contingent of between €500,000 and €1m based on achieving certain revenue targets for the year ending 31 July 2019.
It will be paid with €9.6m cash, to be satisfied from the Group’s existing cash resources and a draw down from the Group’s extended £35m (previously £30m) revolving credit bank facility; the placing of 1.2m ordinary shares of 10 pence each in the company; and €3m by way of a convertible loan note.
Esize is a leader in the Netherlands for its cloud-based spend management solutions. AIM-listed Proactis said the acquisition would give the firm additional capabilities in the travel and expense management and contract labour markets. It has approximately 60 customers across the private and public sectors and approximately 50 employees. Last year, Esize reported revenues of €5.1m, a 19% YOY growth, and pre-tax profits of €600,000 – a 48% YOY growth.
Proactis added: “The acquisition will also benefit Proactis by creating a scaled operation in The Netherlands, where it will consolidate its existing operations. It will also allow PROACTIS to access growth opportunities through the cross-selling of complementary capabilities to both customer bases.”
The firm also issued a trading update, in which it said it expected to report revenues of £52m and Adjusted EBITDA1of approximately £17m for the year ended 31 July 2018. It added that its deal intake was strong with 64 new names, with a total initial contract value of £8.7m (2017: 54; £4.1m) and 119 (2017: 110) upsell deals.
Proactis acquired Perfect Commerce LLC for £94.3m, a complementary provider of spend management systems to buyers and networking services to suppliers, last year; and swooped for Perfect’s French arm of the business earlier this year.
