ASX-listed LiveTiles (ASX:LVT) has signed an agreement to acquire 100 percent of digital workplace software business, Wizdom – expanding its capabilities and market opportunity into the growing European market.
Headquartered in Copenhagen, Wizdom is a leading ‘plug and play’, Microsoft-aligned digital workplace software business.
It has 243 SaaS (software-as-a-service) customers throughout Europe including Nokia, Syngenta, De Beers and Anglo America – providing LiveTiles with an immediate customer base and established European presence.
Wizdom also brings annualised recurring revenue (ARR) of $8 million (as at 31 December 2018) increasing the combined ARR of the two businesses to $30.9 million.
Wizdom’s software is built on the same Microsoft platforms as LiveTiles and provides users with the tools needed to drive employee engagement, collaboration and compliance.
LiveTiles says the acquisition is highly complementary, bringing multiple opportunities for interoperability and an established reseller network in Europe driving cross-selling opportunities. Its technology will allow LiveTiles to deliver new capabilities in relation to news and content publishing.
“Wizdom will enable us to broaden the LiveTiles intelligent workplace platform to deliver exciting new capabilities to current and future LiveTiles customers. At the same time, LiveTiles’ leading AI capabilities provide a significant cross-sell opportunity to Wizdom’s growing customer base across Europe,” said Karl Redenbach, Co-Founder and CEO of LiveTiles.
To fund the acquisition, LiveTiles completed a Placement that raised a total of $15.3 million. The cash portion of the acquisition includes $9 million in upfront cash payment and $19 million in stock.
The purchase price also comprises an earn-out of up to $19.6 million – split 25 percent cash and 75 percent in LiveTiles shares, representing an aggregate purchase price of up to $48 million.
The Placement was let by Citigroup Global Markets Australia and received strong report from new local and international investors.
The Wizdom business was launched by co-founders John Wainer and Claus Ole Hasle in 2016 who will both join the LiveTiles senior management team and play a key role in the continued growth of the business.
John Wainer, Co-Founder and CEO of Wizdom shared his enthusiasm for the two businesses coming together.
“We are excited to be joining forces with the LiveTiles team and believe that both companies will be able to leverage their respective customer footprints, established partnerships and sales and marketing channels to drive rapid growth across both businesses,” he said.
This content is produced by Star Investing in commercial partnership with LiveTiles. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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