ReadyTech to acquire IT Vision at an upfront consideration of $23.1

ReadyTech to acquire IT Vision at an upfront consideration of $23.1

SYDNEY, AUSTRALIA: ReadyTech Holdings has signed an agreement to acquire IT Vision, a specialist provider of local government focused technology.

Upfront consideration of $23.1 million will be paid using a combination of 50% cash and 50% shares.

Earnout consideration up to an additional $31.5 million (payable in cash and/or, subject to shareholder approval, ReadyTech shares) subject to achievement of certain revenue and EBITDA milestones within a four-and-a-half-year period following the completion of the transaction

IT Vision has more than 30 years experience in local government software, with 190 customers in Australia and 55 employees across locations in Perth, Adelaide and Melbourne.

The transaction marks a continuation of ReadyTech’s successful M&A playbook and a track record of identifying and executing on highly strategic M&A and accelerating growth in acquired companies.

The acquisition significantly bolsters ReadyTech’s position in local government software – ReadyTech becomes a major local government software provider of scale.

It will accelerates path to cloud subscription for IT Vision’s significant customer set and potential synergies including opportunity to cross-sell/upsell ReadyTech’s broader product suite.

IT Vision is expected to generate $12.5 million of revenue and $2.5 million of EBITDA in FY222. Implied multiple for upfront consideration of 1.8x FY22F revenue and 9.2x FY22F EBITDA.

Implied multiple for maximum consideration payable of 3.5x revenue and 10.0x EBITDA (based on achieving earnout milestones).

Transaction expected to be EPS accretive in FY22 on a pro-forma basis (excluding synergies and integration costs).

https://www.readytech.com.au

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