Reference Number: HDA016
– Outstanding opportunity to acquire a successful enterprise software development and support company based in the Home Counties, UK.
– The business has achieves 67% net profit in the last year with a steady revenue over the last 3 years of which 80% is under contract.
– The software product is well documented and so easily transferable to a new technical team.
– Established in 1986, the business has developed an extremely loyal client base, with 30 customers all with annual support contracts, paid in advance.
– The vast majority of current business is from the existing client base which includes household names in education, banking, commercial and local authority organisations worldwide.
– Whilst there is scope to increase marketing activity, the business continues to attract new customers and has a good sales pipeline.
– The business has a unique product and is currently sold at very competitive rates compared to the closest competitors.
– This business would be of particular interest to other software development and IT support companies that are looking for a strategic acquisition to add to their portfolio.
Products and Services
– The business offers support for installation and on-going use for two main industry-leading products
- Enterprise job scheduling and control utility for networked UNIX, Linux and Windows server systems
- Enterprise printer software application and print management solution for UNIX and Linux systems Hardware and software sales
Both products are open source and were developed by the business.
– 1 directors (vendor) + 3 contractors
– The business operates from a home office.
Reason for sale:
– The vendor is retirement age and wishes to exit the business and to relinquish responsibility to fulfil support contracts.
|Year End: 30th September|
11 months to 31Aug 13
|Cost of Sales|
The adjusted EBITDA is stated after having paid the replacement cost of the vendors.
Synergy savings of £19k are possible through consolidation of the premises and other administrative costs. Based on the 2012-13 figures, this would enable the strategic buyer to achieve an EBITDA of £141k.