Marlowe plc acquires Core Stream Limited for £18 million
LONDON, UK: Marlowe plc has acquired the leading governance, risk and compliance (GRC) Software as a Service (SaaS) platform Core Stream Limited for an implied enterprise value of approximately £18 million.
Founded in 2006 and headquartered in London, CoreStream supports large organisations with corporate compliance and risk management needs.
CoreStream is a leader in the UK’s attractive GRC software market which is experiencing significant growth driven by clients demands for improved governance and risk management to address their increasing exposure to new and expanding regulation.
The Acquisition broadens Marlowe’s digital and ESG service offerings and further deepens the Group’s relationships with leading blue-chip organisations. It also provides strong cross-selling opportunities across the Group’s existing software and service portfolio, and significantly expands its base of SaaS subscription revenues.
In the year to 31 March 2021 CoreStream generated adjusted EBITDA of £1.5 million on revenues of £4.1 million. Organic revenue CAGR from 2019 to 2021 was in excess of 30%.
The implied enterprise value includes initial cash and deferred consideration of £11 million and a performance based earn-out expected to be in the region of £7 million.
Alex Dacre, Chief Executive of Marlowe plc, said: “The acquisition of CoreStream strengthens Marlowe’s position in the UK’s rapidly-growing governance, risk and compliance software market. In combination with our existing compliance software products, CoreStream’s platform enables us offer our clients a complete GRC risk management solution to improve corporate governance & control, reduce risk and enhance compliance. It also strengthens our ability to support clients on their ESG objectives.
We continue to make good progress on our digital strategy of growing Marlowe’s compliance software revenues and this acquisition marks an important milestone in that journey, increasing our base of SaaS subscription revenues, offering greater cross-selling opportunities, and improving our position for the long-term in this important and attractive market.”
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16 Jul, 4:40 pm GMT+1 ·Disclaimer
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