Sepura PLC Acquires Portalify OY
Sepura, a leading global provider of critical communications systems, today announces the acquisition of applications developer Portalify OY ("Portalify"), for an initial cash consideration of €1 million.
Portalify provides end-to-end solutions for mobile working via a suite of software applications which increase the safety, productivity and efficiency of professional mobile radio users, across multiple communications standards. Its existing portfolio includes task management, asset location, image messaging and database query applications. Portalify's current revenues are derived primarily from a small number of public safety customers in Western Europe, giving Sepura the opportunity to generate additional revenues by promoting Portalify's applications through our existing comprehensive worldwide routes to market.
Portalify's contracts typically generate revenues over a multi-year cycle with maintenance revenues, project expansions and other change requests being incremental to the original contract value, further enhancing the Group's base of recurring revenues.
Contingent consideration of up to €6 million will be payable in cash if Portalify achieves revenue and operating profit targets over the three years to 30 June 2016, with any net debt outstanding at completion, expected to be approximately €1 million, being deducted from any future consideration payable.
Based in Helsinki, Finland, Portalify generated revenues of €1 million for the year ended 31 December 2012, with a reported operating loss of €0.4 million. The acquisition is anticipated to be earnings accretive for Sepura from FY15.
Gordon Watling, CEO of Sepura, commented: "This acquisition is an important strategic step as we continue to develop our complete critical communications solution, and follows the successful acquisition and development of Sepura Systems last year.
"We are seeing increasing demand from our customers for software tools and applications as they seek to enhance user safety and drive operational efficiency from their investment in digital communications. While we already have many of the skills required to build a successful portfolio of applications, acquiring Portalify gives us immediate access to an enlarged suite of applications that our customers need, giving us a fully integrated solution much faster and more cost effectively than creating it internally. Portalify's software expertise complements our existing product portfolio, enabling us to broaden the capability we offer, whilst securing a longer term relationship with our customers."
Oakley Capital Corporate Finance were financial advisors to Sepura on this transaction.