LONDON, UK: Sopheon Plc has acquired the business and assets of ROI Blueprints LLC (ROIB), a cloud-based solution focused on detailed enterprise planning and execution. The Group is also providing a trading update for the current year ending 31 December 2021.
The transaction is structured as an asset purchase. Initial consideration of US$1.5m is payable in cash, funded from the Group’s existing resources of over $24m at 30 November 2021.
An additional, contingent deferred earn-out of up to $1.5m is payable over the next three years, linked to product deliverable and revenue targets. Up to one-third of the earn-out is payable in Sopheon shares valued at £9.35 per share, the mid-market closing price on 16 December 2021.
The business is expected to record pro-forma revenues of approximately $0.1m in 2021. Sopheon will also take on an annual cost base of approximately $0.5m and net financial assets of approximately nil, before valuation of intangibles and goodwill.
As noted above, Sopheon revenues are expected to respond positively to the added market reach afforded by the ROI Blueprints capability, which adds upsell opportunity and the potential for a higher acquisition of new customers.
ROIB is a cloud-based project and portfolio SaaS solution designed to help organizations drive operational execution management of corporate initiatives.
Integrating the ROIB solution with Sopheon’s Accolade product will extend the value of Sopheon’s offering and expand market reach. It will also further accelerate Sopheon’s migration towards cloud and SaaS. In addition to the cross-selling opportunities, these attributes will further underpin the Group’s solid retention metrics.
ROI Blueprints was founded in 2014 by industry domain experts Ketan Jahagirdar and Russ Fuja following years of expertise working with enterprise leaders such as Motorola, Accenture, and Diamond Management Consultants.
Greg Coticchia, CEO of Sopheon commented: “We are excited to add ROIB to the Sopheon family, further enhancing our ability to link and connect corporate innovation planning and operational execution for improved risk mitigation and decision making. ROIB not only brings new capability to our offering but also represents a wealth of knowledge which will contribute to our future roadmap. We see this as a technology acquisition that will improve our time to market for a key product capability. I believe it would have taken us at least two years of material investment to develop equivalent capability in house.”
Ketan Jahagirdar, ROIB co-founder and CEO commented: “Sopheon represents a unique market fit for us. We have built what we believe is the most compelling platform for project and portfolio execution. We are very excited that we can now accelerate further development and commercialization as part of the overall Sopheon product offering, leveraging Sopheon’s proven sales and marketing resources.”
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