OSLO, NORWAY: SmartCraft ASA has expanded into the UK market and opens a vast market opportunity outside the Nordics through the acquisition of the construction SaaS company Clixifix Ltd. The acquisition adds an annual recurring revenue (ARR) of GBP 2.76 million.
The transaction is based on an enterprise value of GBP 10.2 million, which will be settled in cash, but with a small element of 177 353 SmartCraft treasury shares already purchased in the buy-back program. The agreement to acquire the company was executed today and is conditional only on the vendors receipt of funds and is thereby expected to close today.
“This is a landmark event for SmartCraft, and through this strategically important, and financially accretive transaction, we are taking our first step outside our Nordic home markets, expanding our market potential massively. Clixifix represents a great foothold and starting point for further growth in the UK. It also matches well with SmartCraft as it has a high share of SaaS recurring revenue, a strong growth profile, an attractive, large customer base and a modern technical platform,” said CEO of SmartCraft Gustav Line.
Clixifix offers an end-to-end SaaS based scalable solution managing defects, complaints and repairs for construction companies and property owners. Since its inception in 2012, the platform has resolved more than 1.8 million defects.
“We are very excited to welcome Clixifix to the SmartCraft family. With 85 percent recurring revenue, a modern technology platform, low churn, rapid growth and a highly scalable model, Clixifix is a high-quality platform that stands out in the UK landscape. The solution provides great value for its 20.000 users across 250 corporate customers, with rapid return of investment for the system’s customers,” said Gustav Line.
In 2023, Clixifix had revenues of GBP 2.45 million, representing a growth of 50 percent compared to 2022. Currently, the company has 34 employees. In the first three months of 2024, Clixifix continued its fast growth, with an organic revenue increase of 30 percent to GBP 0.72 million (compared to 0,55 in Q1 2023) despite a challenging construction market. In Q1 2024, the company had 36 percent EBITDA margin and 7 percent EBITDA-CAPEX margin (“cash EBITDA”).
Q1 2024 was the first quarter in the company’s history with a positive cash EBITDA, which was achieved through strong growth combined with a scalable business model. At the end of February 2024 Clixifix had an annual recurring revenue (ARR) of GBP 2.76 million.
“We are really looking forward to becoming part of SmartCraft. With its strong track record of building great software companies and a broad portfolio of best -of-breed SaaS solutions for the construction industry, we truly think it’s a great home for Clixifix,” said James Farrell, CEO of Clixifix.
Clixifix is SmartCraft’s 12th acquisition, over the past seven years. The first 11 acquisitions were in Norway, Sweden, and Finland, and the company has since the IPO in 2021 stated the ambition of expanding the successful model for SaaS based software tools for the construction industry in Northwestern Europe.
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