Independent Software Vendor – Scientific Sector – For Sale

Reference Number: HEM270

Location: South East Australia

Turnover: AUD 1.1m

Status: SOLD

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Business Summary

  • Long-established IT software company of 21 years, based in South East Australia.
  • Specialist in Laboratory Information Management Systems (LIMS).
  • Software easy to use and flexible – able to adapt to different operations, environments and scenarios without the need for customisation.
  • Extensive customer base (60+) throughout Australasia (predominantly Australia but also New Zealand, Indonesia and China).
  • Supports a wide range of large laboratories, predominantly from competitive, time- sensitive, commercial markets.
  • Turnover to June 2014 was AUD$1.035m, with an adjusted EBITDA of $228k (21%). Forecast turnover to June 2015 is c.$1.056m with an adjusted EBITDA of $410k (39%). Four year average EBITDA of c.31%
  • Recurring annual maintenance contracts accounting for one third of turnover.
  • Individual systems sell for $50K to $200K – the cost typically recovered by clients in the first 2 years by efficiency gains alone.
  • The systems enjoy an almost 100% up-time. Highly stable database, able to withstand major network and server crashes without corruption.
  • Strong customer service and competitive advantage – rapid response and turnaround times, bespoke service and a low error rate.
  • Recently introduced partnership with a Cloud service provider enabling remote access and seamless operation.
  • Small team with strong experience base.
  • Core product has been internationalised – huge potential for export/international growth.
  • The acquisition offers the chance for an existing software company to add a new product to their portfolio or for the right laboratory supplier to provide an additional offering.

Products and Services

  • Fully integrated Laboratory Information Management System with support and maintenance contracts and add-on functionality modules.

Employees

  • There are currently 8 staff, and a second customer service officer is to be appointed imminently.

Premises

  • High quality, contemporary offices in South East Australia. Current lease is for 3 years to September 2017.

Reason for sale

  • The vendor is approaching retirement age and is looking to sell the company. He is willing to support a handover for as long as is required.

Financial Overview

Year ending 30th June2012201320142015 (forecast)
Sales revenue$804,141$1,090,608$1,035,228$1,056,727
Gross profit$569,544$771,746$767,796$837,343
Percentage71%71%74%79%
Adjusted EBITDA$266,936$361,539$228,657$410,390
Percentage33%33%22%39%
SOLD

 

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