Brady, the leading global provider of trading acquires Enaptive Inc

Posted: 7th September 2015 08:20

Brady, the leading global provider of trading, processing and risk management solutions for metals, recycling, energy and soft commodities, is pleased to announce that it has acquired the assets and goodwill of the ScrapRunner product, from Enaptive Inc ("ScrapRunner"). Enaptive is a US-based company providing dispatch systems designed specifically for the scrap metal and recycling industrymarkets. ScrapRunner has been operating since 2003 and its clients are based throughout North America and Europe.

The total consideration payable for ScrapRunner is USD 2 million (approximately £1.3 million) payable as to USD 1.8million in cash on completion, USD 100,000 in cash one year after completion and USD 100,000 in cash two years after completion subject to any amounts that may become payable to Brady under the indemnifications.  This consideration includes working capital of USD 200,000, which will be adjusted by a completion accounts verification process. The acquisition is expected to be earnings enhancing in 2015.

ScrapRunner's unaudited draft accounts for the year ended 31 December 2014 show revenues of USD 2 million, 62 per cent. of which are recurring, generating a profit before tax of USD 694,000.  As at 4 September 2015 unaudited net assets were approximately USD 157,000.

The Directors believe that the acquisition has a compelling strategic, commercial and financial rationale, in particular:

Brady's expertise in recycling and scrap solutions combined with ScrapRunner's strength in dispatch solutions creates an excellent platform to drive further revenue growth.

Commenting on the acquisition, Gavin Lavelle, CEO of Brady, said:
"The US scrap market is worth $100 billion in turnover, and 50% of this is already transacted using Brady software, with seven of the top 10 recycling companies using Brady. We believe recycling represents a significant opportunity for Brady and are confident that the combined ScrapRunner/Brady group can increase our global market share even further. ScrapRunner is the leading dispatch solution designed for the recycling and scrap markets and is highly complementary to our solutions, presenting opportunities to cross and up-sell on a global basis. ScrapRunner also provides further domain knowledge in the recycling and scrap markets and overall provides exciting new growth opportunities."

About Brady
Brady plc (BRY.L) is the largest European-headquartered provider of trading and risk management software to the global commodity and energy markets. Brady combines fully integrated and complete solutions supporting the entire commodity trading operation, from capture of financial and physical trading, through risk management, handling of physical operations to back office financials and treasury settlement, for energy, refined, unrefined and scrap metals, soft commodities and agriculturals.

Brady has 30 years' expertise in the commodity markets with some 300 customers worldwide who depend on Brady's software solutions to deliver vital business transactions across their global operations. Brady clients include many of the world's largest financial institutions, trading companies, miners, refiners and producers, recycling companies, scrap processors, tier one banks and a large number of London Metal Exchange (LME) Category 1 and 2 clearing members and many leading European energy generators, traders and consumers.

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