GetBusy PLC Trading Update and Bolt-on Acquisitions (4504P)
19 October 2021 - 5:00PM
UK Regulatory
TIDMGETB
RNS Number : 4504P
GetBusy PLC
19 October 2021
19 October 2021
GetBusy plc
Trading Update and Bolt-on Acquisitions for SmartVault
GetBusy plc (AIM: GETB), a leader in productivity software for
professionals and financial services, is pleased to provide an
update on trading and announce the completion of two bolt-on
technology acquisitions within SmartVault, DocDown and Quoters.
Quoters (www.quoters.io) automates proposals and quotes,
simplifying a core part of the client workflow for accountants and
financial services professionals. DocDown (www.docdown.io) uses
online web forms, web hooks and APIs to automate the population of
forms and templates, removing the need for error-prone manual
transfer of information.
Together, these bolt-on acquisitions, which have been executed
on attractive terms for the Group given the consideration is
weighted to future performance, are expected to accelerate
SmartVault's product roadmap across client workflows and its
go-to-market strategy into the wider financial and professional
services market.
Financial details
GetBusy is paying a non-material amount of upfront cash for each
asset, with a cash earn-out payment in early 2023 of 1x annualised
recurring revenue ("ARR") from the acquired products as at 31
December 2022. The respective earn-out payments are capped at
US$0.5m each, with the total potential consideration being funded
from the Company's existing cash resources and such that neither
acquisition constitutes a substantial transaction pursuant to AIM
Rule 12.
The short-term investment in development and commercialisation
is not expected to be material, however once integrated into
SmartVault and tailored for its customer base, both products are
expected to start to contribute to revenue during 2022. In the case
of both acquisitions, the founders will be retained to accelerate
the integration and to ensure swift and complete knowledge transfer
to the SmartVault team.
Rationale
SmartVault is a leading cloud-based productivity, document
management and storage software solution with a substantial market
share in the US accounting, bookkeeping and tax markets. Quoters
and DocDown will be integrated into SmartVault, broadening the
offering into other core elements of customer workflows.
The Group expects to integrate and launch these acquired
capabilities to new and existing customers over the next 15 months.
Coupled with SmartVault's other planned technological enhancements,
they provide the opportunity to significantly enhance average
revenue per user.
Go-to-market strategy
The total available market in the core US accounting and
bookkeeping market for SmartVault is estimated by the Company to
exceed $800m in ARR. In addition, SmartVault is developing a
foothold and growing momentum in the broader US financial services
sector following the launch of its Certified Vault product earlier
this year. The acquisitions form part of the Group's strategy to
accelerate penetration of these adjacent markets, which the Company
estimates to be significantly larger than the core accountancy
market.
Trading update
Trading has remained robust since the half-year, with progress
made in all elements of the Group's strategy. The recurring revenue
growth rate from H1 (12% at constant currency) has been sustained
in Q3, and net cash at 30 September 2021 was up GBP0.3m at GBP2.3m.
The Board looks forward to the final quarter of 2021 and into 2022
with increasing confidence.
Daniel Rabie, CEO of GetBusy, comments:
"We are delighted to welcome DocDown and Quoters into the
GetBusy family with a common goal to make professionals productive
and happy.
"We know our clients spend valuable billable hours initiating
client engagement and need more help streamlining administrative
tasks so they can focus on fee-earning activities. This is
compounded by the need for professionals to navigate increasing
complexities around privacy legislation, cyber security concerns
and flexible work patterns. Our growing solution portfolio is
specifically tailored to manage this workload, allowing our
customers to be more efficient, profitable, compliant and
differentiated.
"Following the two acquisitions announced today, we have a clear
roadmap to integrate these new functionalities into our rapidly
growing SmartVault product, providing additional value to our
substantial user base and becoming even more embedded into our
clients' digital infrastructure.
"We are excited about the future with our growing capabilities,
combined with an expanding market opportunity, leaving us
well-placed to execute our ambition of sustained double digit
recurring revenue growth and a doubling of ARR within 5 years."
A video by CEO, Daniel Rabie, discussing the Group's strategy
and acquisitions is available to watch here:
https://bit.ly/GETB1021
Enquiries
GetBusy plc via Alma PR
investors@getbusy.com
Liberum (Nomad and Broker)
Cameron Duncan / Lauren Kettle +44 (0)20 3100 2000
Alma PR (Financial PR) +44 (0) 20 3405 0205
Hilary Buchanan / Andy Bryant
About GetBusy
GetBusy's suite of software applications streamline complex
admin tasks for over 68,000 fee-earning professionals, enabling
enhanced productivity and security anytime, anywhere.
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