LONDON, UK: Elixirr International plc (AIM:ELIX) announced the acquisition of the entire issued share capital of technology and data firm, iOLAP Incorporated for a maximum total consideration payable of US$40.0 million.
Elixirr’s Board’s current expectation is that full year FY22 revenue will be in the range of £70 million – £75 million with an Adjusted EBITDA margin in the range of 27-28%.
iOLAP is a US-headquartered technology services firm with 239 full-time employees specialising in provision of end-to-end data and advanced analytics services. This is Elixirr’s third acquisition since IPO in July 2020 and the first in the USA, marking another step forward in the Group’s growth strategy.
The business being acquired recorded revenue in 2021 of US$22.3 million (£16.9 million), normalised adjusted EBITDA of US$4.2 million (£3.2 million) and normalised profit before tax of US$3.8 million (£2.9 million).
The acquisition brings specialist data and analytics capabilities, including artificial intelligence (AI) and machine learning (ML), into Elixirr where there is existing demand for these services.
This will enable Elixirr to form even stronger and longer-term relationships with its existing clients as they work together on their toughest business challenges.
iOLAP generated 94% of its 2021 revenue from US clients with a similar profile expected this year, resulting in a significant expansion of Elixirr’s US footprint, and delivers work with teams in the US and Europe.
The data consulting market is forecast to grow by 32% a year on average to US$4.2 billion by 20261, meaning this Acquisition positions Elixirr to maximise its share of that opportunity.
iOLAP has a very strong reputation in the market – it outperformed competitors in 93% of the categories measured and scored by their clients during due diligence, with its main strengths attributed to technical capability and ability to deliver proactive insights during client engagements.
Elixirr has already worked alongside iOLAP on several client engagements over the past six months, validating the forthcoming success of this partnership. iOLAP has worked with both Elixirr consulting clients as well as clients of the other brands within the Group. Likewise, Elixirr has sold its other brands into current iOLAP clients. It is a proven relationship where the Group is particularly excited by the cross-selling opportunity.
Founder & CEO of Elixirr, Stephen Newton said: “I’m delighted to welcome iOLAP as the latest addition to Elixirr, one of the most significant growth milestones in our firm’s history.
As organisations continue to embark on digital transformation and operate in an increasingly customer-centric world, it is crucial for business leaders to put data at the heart of their strategy in order to stay ahead. iOLAP’s offering in this space, combined with the scale at which they operate in both the US and European markets makes this acquisition incredibly exciting.
Combining iOLAP’s expertise in data and analytics with Elixirr’s deep strategic and business consulting experience will ensure we continue to stay at the heart of key boardroom challenges. In iOLAP we see a group of culturally aligned entrepreneurs, who are driven by intellectual curiosity and a desire to solve problems for their clients and I truly believe that our combined proposition offers something unique in the market.
I can’t wait to see what the future holds for Elixirr with the addition of iOLAP, as we continue in our quest to truly redefine our industry and be the best consulting firm in the world.
CEO of iOLAP, Chris Jordan said: “After growing significantly over the last few years, we were looking for a model to ensure we maintain momentum and Elixirr is the perfect partner for this. Combining our technical expertise with Elixirr’s strategic competencies allows us to satisfy greater demands from our existing and future client bases, and the respective client bases our companies hold in different geographies present significant growth opportunities.
We have already proven the power of our partnership, having worked together on several client projects over the last six months, and it’s clear that there is an appetite from our clients for a combined proposition. Joining Elixirr will also provide opportunities for our employees to further develop their careers and take on more of an owner mentality, through the various equity incentive schemes that the firm has in place”.
Elixirr is an established global award-winning management consultancy, challenging the larger consultancies by delivering innovative and bespoke solutions to a repeat, globally-recognised client base.
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