LONDON, UK: Sopheon plc, the InnovationOps software company, has announced the acquisition of the business and assets of Prodex Systems Australasia, a specialist provider of innovation software and consulting based in Brisbane, Australia.
Prodex, which has been Sopheon’s reseller in Australia for over a decade, serves customers in the food and beverage, chemicals and mining sectors in Australia, New Zealand and South-East Asia. The acquired business, now doing business as Sopheon Asia Pacific, had revenues of AUD $1.5m and EBIT of AUD $0.15m for the year ended June 2022.
The acquisition is part of Sopheon’s strategy to leverage M&A to add revenue and geographical footprint, following the previous acquisitions of ROI Blueprints and Solverboard, which brought new technology assets to the Group. Sopheon said the deal would give the Group a strong and stable platform to advance customer acquisition and growth in the world’s most dynamic region.
The consideration for the acquisition comprises AUD $1m of which two thirds is payable immediately in cash, and the remainder over three years as contingent deferred consideration tied to baseline performance metrics. An additional contingent earn-out of up to a maximum of AUD $1.2m is also payable over the next three years, tied to revenue and EBIT growth objectives. Up to 50% of the deferred and earn-out consideration may be satisfied in Sopheon shares issued at £5.63 per share.
Greg Coticchia, CEO of Sopheon, said: “This is Sopheon’s third acquisition in 19 months and the latest evidence of the strong momentum that our company is experiencing. With companies throughout South-East Asia increasing their innovation investments, it’s fitting that Sopheon’s first acquisition to expand our geographic presence be in this expanding market.”
Prodex founder and CEO Gerard Ryan said: “The transition for Prodex to become a Sopheon entity is an exciting extension of the reseller agreement we have had in place for many years. We are already working with Sopheon in Australia, New Zealand, and Thailand with market development plans in place for the wider South-East Asian region.”
Sopheon Plc acquires UK based cloud-based business, Solverboard