REG - GetBusy PLC - Acquisition of SmartPath

GetbusyAnnouncement

04/04/2024 07:00

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RNS Number : 2377J  GetBusy PLC  04 April 2024

4 April 2024

GetBusy plc

Acquisition of SmartPath broadens product offering in valuable US accounting
market

 

GetBusy plc ("GetBusy", the "Company" or the "Group") (AIM: GETB), a leading
provider of productivity software for professional and financial services,
announces the acquisition of the trade and assets of SmartPath LLC
("SmartPath"), the pricing intelligence and revenue optimisation platform for
the accounting industry.

The acquisition broadens the Group's product offering into the pricing and
small-practice management space in the highly attractive and strategically
valuable US market, providing substantial potential value to SmartVault's
existing customer base of over 6,000 accounting firms and providing an
enhanced expansion revenue opportunity for the Group.

Building on 15 years of price consulting experience in the US accounting
industry, SmartPath launched its Engage pricing platform in May 2023 to enable
CPA firms to more efficiently and more accurately price the varied work they
perform for customers, enabling them to recover more revenue, avoid
scope-creep and ultimately scale their practice.  Since launch, SmartPath has
acquired around 140 accounting customers generating approximately $200,000 in
ARR at 31 January 2024. The acquired assets operated at approximately
breakeven in the 3 months ended 31 January 2024.

The acquisition of SmartPath includes all intellectual property and customer
contracts, together with the assignment of all supplier contracts required for
the ongoing operation of SmartPath. In addition, the Group has engaged the
services of SmartPath's two employees, including SmartPath founder Will
Hamilton.

The acquisition consideration comprises an initial cash payment of US$250,000
(the "Initial Consideration") and a further cash amount (the "Contingent
Consideration") will be payable in 2027 subject to the level of Annual
Recurring Revenue attributable to the SmartPath product ("Attributable ARR")
at 31 December 2026 and provided Attributable ARR is $1,000,000 or higher.
The Contingent Consideration payable increases linearly from 30% of
Attributable ARR if Attributable ARR is equal to $1,000,000, to 50% of
Attributable ARR if Attributable ARR is $2,000,000 or higher.  The Contingent
Consideration is capped at $2,000,000 and is payable in three equal quarterly
instalments starting on 31 March 2027.

 

Daniel Rabie, CEO of GetBusy, comments:

"We are delighted to add SmartPath's pricing intelligence and revenue
optimisation capabilities into SmartVault's leading offering in the US
accounting market.

"SmartPath's  unique, proprietary insights into pricing, built over 15 years
of working with accounting firms, and the revenue optimisation base it has
built offers an excellent opportunity for our installed base of over 6,000 US
accounting firms to optimise their customer billing and make their firms more
profitable.

"We look forward to working with Will as we integrate SmartPath into our
SmartVault business and add even more value to our customers and the Group."

 

GetBusy plc

investors@getbusy.com

 Cavendish Capital Markets Limited (Nominated Adviser and Broker)         +44 (0)20 7220 0500

 Matt Goode / Charlie Beeson / Trisyia Jamaludin (Corporate Finance)

 Harriet Ward (ECM)

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION (EU) NO 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF
THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"). UPON THE PUBLICATION OF THIS
ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN. THE PERSON RESPONSIBLE FOR MAKING THIS ANNOUNCEMENT ON BEHALF OF THE
COMPANY IS PAUL HAWORTH.

About GetBusy

GetBusy's specialist productivity software solutions enable growing businesses
to work securely and efficiently with their customers, suppliers and teams
anytime, anywhere.  Our solutions can be delivered flexibly across cloud,
mobile, hosted and on-premise platforms, whilst integrating seamlessly with a
wide variety of other class-leading core business systems.

With over 73,000 paying users and over 3 million collaborators across multiple
market sectors and jurisdictions, GetBusy is an established and fast-growing
SaaS business delivering sustained double-digit growth in high-quality
recurring subscription revenue over the long term.

Further information on the Group is available at www.getbusyplc.com

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