LONDON, UK: Glantus Holdings, the provider of Accounts Payable automation and analytics solutions, has acquired Technology Insight Corporation and the business and certain assets of Technology Insight Europe Limited, for a total consideration of up to $9.3million, a news release said.
This earnings-accretive acquisition will provide an immediate boost to the company’s earnings per share, representing a major next step in the company’s post-IPO growth strategy.
Technology Insights Corporation (TIC) is a software solution provider into the accounts payable (AP) departments of large, often global, enterprises. It has developed its own software solution which it has branded Datashark.
TIC has been trading for over 20 years and has built up a strong annual recurring revenue base of in excess of $2.6 million in 2020 and transactional revenues of over $1.2 million in 2020. For the year ended 31 December 2020, TIC reported turnover of $3.8m and pre-tax profits of $583k.
TIC is headquartered in Boston, US, and provides IT solutions across the United States. TIC has its own intellectual property which has been developed over 20 years. Its skill and reputation around AP analytics will be of considerable benefit to Glantus and the expansion of its US technical resource team will enhance the Company’s technical support, pre-sales capabilities and implementation processes in this important market.
The Acquisition offers the opportunity to cross-sell the individual technologies of each company across the combined customer base, together with an acceleration of the Company’s organic growth within the existing customer base.
The vendor, Karl Anderson, is founder and CEO of TIC, who will remain within the enlarged Group as SVP of Acquisitions and Developments.
TIC has 35 global customers, all of whom have a similar profile as Glantus’ existing enterprise customer base, with an average annual spend in excess of an estimated $500 million.
The acquisition of TIC brings Glantus’ total enterprise customer base to over 80 and consolidates the Company’s position in the US AP solutions market. TIC deals directly with the AP function within these organizations.
Like Glantus, TIC has two forms of revenue stream – subscription and transactional. TIC’s primary software solution is an analytics product, Datashark. This product is sold on an annual license/subscription basis providing current recurring revenues of c. $2.6 million in 2020. TIC’s recurring transactional revenues account for c. $1.2 million in 2020, bringing the overall current annual run rate revenues to $3.8 million in 2020. This profile of revenue is attractive to Glantus, as it continues to grow its current recurring revenue base and expand its successful subscription model.
Responding to soaring customer demand, Glantus has been an active developer of advanced AP analytics for many years. With TIC’s 20 year history working in AP analytics and in-depth knowledge of its customer requirements, the Acquisition will significantly accelerate the Company’s provision of an advanced AP analytics offerings to its customer base, and ensure the product is a perfect fit for its global customers’ requirements. In turn, the Glantus platform will bring a more integrated solution and capability to TIC customers, offering additional products, such as procurement to payment, statement reconciliation, and contract compliance.
Maurice Healy, CEO of Glantus, said: “We’re delighted to be joined by the TIC team on this journey – this is the first acquisition of many that we will undertake following our successful IPO. Our goal is to become a leader in AP technology through a mix of strong organic growth and acquisition, and the addition of TIC is another key step in that exciting process.
The acquisition of TIC will provide presales, implementation, and technical support resources to the entire US team, and will make the provision of our services across the board more effective and more efficient in the US.
In addition, the acquisition provides us with additional management resources, sales resources, and a greater geographic spread of customers in the US. And while there are also opportunities to reduce costs in the integrated business, it is the addition of these important resources that makes the acquisition of TIC even more compelling.
The integration of the Technology Insights (TIC) brand with that of JPD (last year’s US acquisition) under the Glantus brand, sends a clear message to the market that Glantus is a major player in the Accounts Payable space and in the consolidation of the US market.”
Karl Anderson, Founder and CEO of TIC, said: “We recognize that customers are increasingly looking at automation and AI to drive further efficiencies in their financial processes. With Glantus, we now have the advanced technology platform and the team behind us to deliver additional services to our customers.”
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15 Jul, 4:30 pm GMT+1 ·Disclaimer