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Sopheon acquires ROI Blueprints, FY trading in line with expectations
20th Dec 2021 11:00
(Sharecast News) - Software company Sopheon has acquired detailed enterprise planning and execution solutions provider ROI Blueprints in a deal worth as much as $3.0m.
Sopheon said on Monday that the transaction was structured as an asset purchase, with the group making an initial consideration of $1.5m in cash for the business, funded from existing resources of over $24.0m, while an additional, contingent deferred earn-out of up to $1.5m was payable over the next three years, linked to product deliverable and revenue targets. Up to one-third of the earn-out was payable in Sopheon shares valued at £9.35 each, the stock's mid-market closing price on 16 December.
The AIM-listed group expects ROIB to record pro-forma revenues of approximately $100,000 in 2021.
Elsewhere, Sopheon stated that rising commercial traction across its core performance metrics highlighted back in August had continued, with the company expecting to report revenues and underlying for the year ended 31 December to be comfortably in line with market expectations, partly driven by "solid progress" on building annual recurring revenues.
Chairman Andy Michud said: "I am delighted to be embarking on the M&A strategy that we have previously signposted, with the acquisition of ROI Blueprints. It adds depth to our product offering, and brings important intellectual property and capability to support our cloud transition. Coupled with our strong organic execution, this is a great way to finish the year".
As of 1100 GMT, Sopheon shares were down 3.21% at 905.0p.
Sopheon said on Monday that the transaction was structured as an asset purchase, with the group making an initial consideration of $1.5m in cash for the business, funded from existing resources of over $24.0m, while an additional, contingent deferred earn-out of up to $1.5m was payable over the next three years, linked to product deliverable and revenue targets. Up to one-third of the earn-out was payable in Sopheon shares valued at £9.35 each, the stock's mid-market closing price on 16 December.
The AIM-listed group expects ROIB to record pro-forma revenues of approximately $100,000 in 2021.
Elsewhere, Sopheon stated that rising commercial traction across its core performance metrics highlighted back in August had continued, with the company expecting to report revenues and underlying for the year ended 31 December to be comfortably in line with market expectations, partly driven by "solid progress" on building annual recurring revenues.
Chairman Andy Michud said: "I am delighted to be embarking on the M&A strategy that we have previously signposted, with the acquisition of ROI Blueprints. It adds depth to our product offering, and brings important intellectual property and capability to support our cloud transition. Coupled with our strong organic execution, this is a great way to finish the year".
As of 1100 GMT, Sopheon shares were down 3.21% at 905.0p.