Acquisition of SmartPath

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

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Cavendish Capital Markets Limited (Nominated Adviser and Broker) Matt Goode / Charlie Beeson / Trisyia Jamaludin (Corporate Finance) Harriet Ward (ECM)

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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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