GetBusy (GETB) , a provider of productivity software for professional and financial services, announced the acquisition of SmartPath, a pricing intelligence and revenue optimisation platform.
The acquisition includes all of SmartPath's intellectual property and customer contracts, as well as the assignment of all supplier contracts required for continuing operation. In addition, GetBusy said it has engaged the services of two employees of SmartPath, including founder Will Hamilton.
The acquisition consideration comprises an initial cash payment of US$250k and a further cash amount payable in 2027, subject to the level of annual recurring revenue (ARR) attributable to the SmartPath product - provided it is US$1.0m or higher on December 31, 2026. The contingent consideration can increase up to 50% of attributable ARR if it reaches US$2m or higher, capped at US$2m total and payable in 3 quarterly instalments from March 1, 2027.
Daniel Rabie, CEO of GetBusy, commenting: "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."
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GetBusy has fully acquired the trade and assets of SmartPath for an initial US$250k and up to an additional US$2 payable in 2027 contingent on performance milestones. The acquisition expands GetBusy's offering into the large US pricing and small-practice management market, providing significant upside to its SmartVault accounting product. Presently, SmartVault serves over 6,000 accounting firms, which should expand materially as a result of the acquisition, bringing additional ARR revenue.
SmartPath is an established name in the space, with 15 years of price consulting experience in the US accounting industry. Most recently, the company launched its Engage pricing platform to help CPA businesses more efficiently and accurately price varied work they perform for their customers. Since launch, SmartPath has acquired c. 140 accounting customers generating c. US$200k in ARR on January 31, 2024. The acquired assets operated at approx. breakeven in the 3 months to January 31, 2024.
In its recently announced full-year results to December 31, 2023 (FY23), GetBusy reported continued double-digit growth and value generation. Recurring revenue rose 12% to £20.3m from £18.3m in FY22, now comprising 96% of total revenues. ARR increased by 10% to £20.5m from £19.2m last year, and gross margin improved to 90.1% from 89.9% in FY22. Cash remained strong at £1.9m, underpinned by an undrawn £2.0m facility, giving a total of £3.9m available growth capital.
Looking ahead, GetBusy's core markets remain solid, balance sheet is robust, and revenue visibility is high. The full acquisition of SmartPath should bolster all three as the company expands into the valuable US accounting market.
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