REG - Accesso Technology - Acquisition of VGS

accesso TechnologyAnnouncement

20/06/2023 11:45

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RNS Number : 3187D  Accesso Technology Group PLC  20 June 2023

20 June 2023

 

accesso® Technology Group plc

 

("accesso" or the "Group")

 

Acquisition of VGS

 

- Acquisition of leading leisure sector ticketing and visitor management
platform for net purchase price of $38.5m -

 

- Significantly expands accesso's global footprint with notable presence
across Asia and the Middle East -

 

- Acquisition expected to be immediately earnings accretive -

 

accesso Technology Group plc (AIM: ACSO), the premier technology solutions
provider to leisure, entertainment, and cultural markets, today announces the
acquisition of VGS, a leading ticketing and visitor management platform
serving over 100 visitor venues including the world's most popular theme park
destination. The acquisition is for a total cash consideration of $52.6m and
the net purchase price is $38.5m, with the agreement including $14.1m of VGS'
existing cash reserves. Completion of this transaction is expected in the
coming days. As part of the accesso product set, the VGS platform will be
rebranded as accesso Horizon.

 

Acquisition rationale and highlights

 

accesso believes the acquisition will:

 

·      Substantially broaden accesso's international reach, opening up
new market opportunities.

Diversifies accesso's revenue stream with a broad global footprint.
Approximately 75% of VGS' revenue in the previous financial year was derived
from markets outside the US, and its presence in Japan, Singapore, China,
Dubai and Egypt offers the Group a range of meaningful new growth
opportunities.

 

·      Strengthen accesso's blue chip customer base and provide
expansion routes within these brands.

Adds an impressive range of venues to the Group's customer base with
comprehensive language capabilities including Arabic, Chinese, and Japanese.
VGS' customers include the world's most popular theme park destination located
in the United States, and one of the Seven Wonders of the Ancient World in
Egypt.

 

·      Enable further revenue growth with the expansion of VGS' offering
to include ecommerce.

Offers potential to expand VGS' powerful platform by leveraging the Groups
expertise to add transaction-based ecommerce, significantly enhancing the
acquisition's strategic value.

 

·      Increase efficiency while providing a product evolution pathway
over the medium to long term.

Expansive features, globalised functionality and robust scaling capability
offer a pathway to evolve the Group's core technology over the medium to long
term. The convergence of certain product elements will improve efficiency,
reduce operating costs and support profit expansion for the Group.

 

·      Deliver immediate earnings accretion.

VGS is consistently profitable and delivered proforma PBT of approximately $4m
in 2022. Alongside its strong technology and strategic fit, the Group expects
it to make an immediate contribution to earnings as part of accesso.

 

Overall, the acquisition of VGS strongly fits the Group's strategic M&A
criteria. It increases diversification, resilience, efficiency and agility in
the business. It is an innovative, globally established technology; it
advances the evolution of the Group's product set; and it is immediately
earnings accretive with significant opportunity for further revenue and profit
growth.

 

Commenting on the acquisition, Steve Brown, accesso's CEO, said:

 

"I am beyond excited to announce the transformative acquisition of VGS, a
business I have long admired and respected. The VGS solution fits squarely
into our product roadmap and its top tier customer base speaks volumes for the
quality, scalability and functionality of the technology.

 

Strategically, this addition of VGS immediately advances our business. It
further elevates our brand, expands our product proposition, significantly
increases our international presence, enhances our revenue diversity and
presents extensive new opportunities for global growth. It also provides a
fundamental building block for our mid to long term product roadmap.

 

I would like to welcome Paolo Moro and his team to Accesso. With offices in
Milan, Dubai, Singapore and Orlando, their talented global employee base of 33
brings a long track record of outstanding product innovation and quality
service to its customers. We are pleased they are joining the Accesso family".

 

Commenting on the acquisition, Paolo Moro, VGS CEO, said:

 

"I'm delighted for VGS to join forces with Accesso. Our technology is
complementary with Accesso's offering. We share the same absolute commitment
to providing the best possible unified solutions to optimise our customers'
operations and enhance their guests' experience before, during and after their
visit. We look forward to working together with as we move ahead to this
exciting next chapter".

 

Further information on VGS

 

VGS was established in 2011 by founder and majority shareholder, Paolo Moro,
to create an innovative ticketing and visitor management platform to support
leading global brands in all aspects of the sale, distribution and redemption
of entitlements. Its client roster of more than 100 venues includes the
world's largest theme park resort destination in Orlando, as well as leading
brands in Dubai, Singapore, Japan, and China. In addition to theme parks, VGS
supports zoos, observation towers and other unique attractions in a total of
11 countries around the globe, including one of the Seven Wonders of the
Ancient World: The Pyramids of Giza in Egypt.

 

Acquisition terms

 

VGS comprises four entities (VGS S.r.l., VGS ME DMCC, VGS Asia PTE Ltd. and
VGS Holding, Inc.), and an underlying subsidiary. These entities are under the
ownership of founder Paolo Moro, as majority shareholder, and two members of
the VGS senior management team. accesso will acquire 100% of each of the four
entities for a total cash consideration of $52.6m including $14.1m in VGS cash
reserves. The acquisition is being funded from the Group's existing cash
reserves and its recently announced credit facility with HSBC, and is subject
to a regulatory approval in Dubai which is expected in the coming days.

 

Financial information on VGS

 

For the fiscal year ending 31 December 2022, on a proforma basis, VGS
generated unaudited revenues of $8.2m, with proforma PBT of approximately
$4.0m. The majority of its revenue is delivered through the sale of software
licenses accompanied by recurring annual maintenance fees along with
professional services. Going forward, VGS' results will be reported as part of
the Group's Ticketing and Distribution segment under IFRS.

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014.  Upon this announcement's publication, this inside information is
now considered in the public domain.

For further information, please contact:

 

 accesso Technology Group plc             +44 (0)118 934 7400
 Steve Brown, Chief Executive Officer
 Fern MacDonald, Chief Financial Officer

 Numis Securities Limited                 +44 (0)20 7260 1000
 Simon Willis, Hugo Rubinstein

 Dentons Global Advisors                  +44 (0)20 7038 7419
 Adam Davidson, Leah Dudley

 

About accesso Technology Group plc

 

accesso is the leading global provider of patented and award-winning
technology solutions that redefine the guest experience, drive increased
revenue, streamline operations, and support data-driven business decisions for
leisure & entertainment operators. Currently serving over 1,000
venues, accesso invests heavily in research and development to provide
venues with technology that empowers them to deliver unforgettable guest
experiences. Staffed by a team of attractions, cultural venue and ski industry
veterans, accesso partners with venues to increase their range of on- and
off-site guest engagement to drive increased revenue through intuitive
ticketing, point-of-sale, virtual queuing, distribution, and experience
management technology.

 

accesso is a public company, listed on AIM: a market operated by the London
Stock Exchange. Learn more at accesso.com (http://www.accesso.com/)  or
follow accesso on Twitter (https://twitter.com/accessotech) , LinkedIn
(https://www.linkedin.com/company/accesso/)  and Facebook
(https://www.facebook.com/accessoTechnologyGroup/) .

 

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