Software Tech M&A and Other News - January 2018

30 January 2018

Boss Insights – News – January 2018

Thomas H. Lee Partners to Acquire Alfresco Software
San Mateo, CA, Maidenhead, UK & Boston, MA – February 8, 2018 – Thomas H. Lee Partners, L.P, a private equity firm, investing in middle market growth companies, has announced that it has signed a definitive agreement under which funds affiliated with THL will acquire Alfresco Software, inc, an enterprise open-source provider of process automation, content management and information governance software. Founded in 2005 and headquartered in San Mateo, California and Maidenhead, United Kingdom, Alfresco provides enterprise content management solutions that enable clients to retain, manage and share documents, files and processes across cloud, mobile, hybrid, and on-premise environments. “With THL’s deep industry experience, operational expertise, and strategic guidance, we will be well positioned to expand our platform, build on our space in the enterprise content management and business process automation markets, and continue providing customers with the best-in-class service they have come to know and expect.” said Doug Dennerline, Alfresco’s Chief Executive Officer.

SAP Acquires Callidas Software for $2.4 Billion
Dublin, Calif. and Walldorf, Germany — SAP SE and Callidus Software Inc. have announced that SAP America, Inc. has entered into an agreement to acquire CallidusCloud, a cloud-based Lead to Money (Quote-to-Cash) solutions company. CallidusCloud’s Lead to Money suite for sales, combined with SAP’s Customer Engagement suite creates leading CRM solution portfolio. The CallidusCloud board of directors has unanimously approved the transaction. The purchase price of $36.00 per share represents an enterprise value of approximately $2.4 billion. SAP has elected to fund the transaction with existing cash balances and an acquisition term loan. The transaction is expected to close in the second quarter of 2018, subject to approval from CallidusCloud stockholders, clearances by the relevant regulatory authorities, and other customary closing conditions. The transaction is expected to be essentially neutral to SAP’s non-IFRS earnings per share for fiscal 2018 and accretive to SAP’s non-IFRS earnings per share for fiscal 2019.

SAP Plans Estimated €2 Billion Investment in France Over 5 Years
Walldorf — SAP SE CEO, Bill McDermott, has announced a series of planned investments for SAP’s operations in France over the next five years to accelerate the company’s digital strategy and support France’s growing position as a hub of innovation. The plans include: opening the second SAP.iO Foundry location in Europe to provide more than 50 start-ups with mentorship, technology and access to the vibrant SAP ecosystem and investment by SAP.iO Fund in French start-ups in the seed or Series A round. SAP will also spend €150 million in R&D annually over the next five years. In addition to acquiring Recast.AI, Paris, a start-up focused on conversational user experience, which will accelerate development of SAP Leonardo Machine Learning capabilities. “There is a real sense of economic momentum in France,” Bill McDermott, CEO, SAP, said after a meeting with French President Emmanuel Macron. “President Macron’s bold embrace of the digital world will help France rise to an enviable position as a global innovation leader. We see immense potential in the entrepreneurial spirit of France to disrupt business models, create modern jobs and unleash exciting new opportunities that help the world run better.”

Dell Considering IPO Four Years After Going Private
Round Rock, Texas - Jan 26th – A little over four years since Michael Dell took his PC company private, the billionaire is pondering taking Dell Technologies public again in a bid to raise cash and reduce debt. If the IPO were to go ahead, it would mean reversing one of the biggest buyouts the tech industry has ever seen. According to insiders, the Board will meet later this month to discuss strategic options, which include an IPO. Dell took his company private in 2013, when he teamed up with Silver Lake on a leveraged buyout. That freed Dell to cut costs and to work to become a bigger supplier of hardware and software for corporate data centers, without the quarterly investor scrutiny that comes with being a public company. Three years later, Dell acquired storage-technology provider EMC Corp. and its majority stake in data-center software vendor VMware, taking on a massive  debt load to seal the $67 billion deal.

ASSIST Integrated K-12 Education Management System Agrees to Acquire Advantages School International to Deliver Accredited School
Reno, NV – 23rd January 2018 - ASSIST, LLC, an Integrated K-12 Education Management System chosen by schools worldwide, has agreed to acquire Advantages School International, a fully accredited, top online school. The combination of ASSIST and Advantages School International will offer education institutions the most innovative, high-performing, and essential educational management in a robust ecosystem that now includes the cloud-based platform, comprehensive K-12 curriculum and an accredited school. “ASSIST LLC’s acquisition of Advantages School International is an example of our continued commitment in offering educational institutions around the world the very best in forward-thinking educational solutions,” said Michael Spencer, ASSIST LLC CEO. “By having an accredited school within ASSIST and robust K-12 curriculum, our education customers can leverage the power of our ecosystem to complement their existing programs with our economical education solutions that they would not otherwise be able to offer to their students.”

ADP Acquires WorkMarket to Further Extend Human Capital Management to Contingent Workers and Create More Agile and Inclusive Solutions for a Changing Workforce
Roseland, NJ – 22nd Jan 2018 - ADP® has announced the acquisition of WorkMarket, a cloud-based, workforce management solution provider that allows companies to build and manage an integrated workforce across W-2 employees, 1099 contractors, vendors and other types of workers. With this acquisition, ADP builds on its current portfolio of industry-leading payroll and human capital management solutions that help clients and workers modernize the way work gets done while unlocking productivity, engagement and growth. "Through this acquisition, ADP continues its tradition of helping clients keep pace with change and manage increasing complexity," said Carlos Rodriguez, president and CEO of ADP. "WorkMarket is a proven expert in freelancer management. We are thrilled to welcome their team to ours and to leverage our global footprint and bring scale to their expertise and technology."

US based Bentley Systems acquires S-Cube Futuretech
22 January 2018, India – US-based Bentley Systems has acquired Software products company S-Cube Futuretech Pvt Ltd. Terms of the deal were not disclosed. In 2015, IDFC-Parampara acquired a significant minority stake in S-Cube Futuretech for $1 million; this transaction offers IDFC-Parampara Early Stage Opportunities Fund its first exit. MK Sinha , CEO of IDFC Alternatives said, “IDFC Parampara was floated with the objective to explore investing into businesses with intellectual property and technology as a barrier to entry. Exit from the investment at healthy IRR validates our return expectation from this asset class.” As part of deal, S-Cube’s software products have become part of Bentley’s structural analysis and design portfolio. Bentley Systems said of the acquisition rationale: ”S-Cube technology, with its niche structural concrete design, detailing and documentation capabilities, uniquely compliments the STAAD and RAM structural analysis and design software. Bentley is now able to offer a complete solution for the structural design of buildings to Indian standards, including reinforced concrete detailing and documentation integrated with STAAD and RAM. Further, this acquisition brings valued expertise.”

OpenGate Capital Completes Acquisition of Mersive Technologies Inc.
Los Angeles, CA & Denver, Colorado – January 16, 2018 – OpenGate Capital, a global private equity firm, announced it has acquired Mersive Technologies Inc, a provider of wireless collaboration software, from shareholders of the business. Terms of the transaction were not disclosed. Mersive launched its suite of wireless collaboration solutions in 2013, transforming ordinary meeting and learning spaces by enabling multiple users to share content collaboratively from laptops and mobile devices to in-room displays – securely and with the best-in-class user interface. Andrew Nikou, founder and CEO of OpenGate Capital, stated, “OpenGate Capital has successfully invested in technology businesses acquired from KPN, Philips and Damovo going back to 2006. Mersive is an exciting investment considering the global and transformative nature of its software solutions in an otherwise hardware-dominated market and its continued triple-digit, year-over-year growth rate with new and existing customers.”

Software AG Closes Fiscal 2017 with Record-Breaking Quarter 
Darmstadt, Germany - January 25, 2018 - Software AG has released its financial results for the fourth quarter and 2017 fiscal year. The company reported the most successful quarter in its history for its growth engine Digital Business Platform. Both license and maintenance revenues reached all-time quarterly highs. New strategic IoT partnerships formed in 2017 with global corporations laid the foundation for scalable and dynamic growth. License revenue in the Adabas & Natural database business also demonstrated above average growth in the fourth quarter. Along with a total revenue increase, Software AG was also able to increase profitability. The company’s operating profit margin (EBITA, non-IFRS) set a new record in Q4, climbing 250 basis points to hit 36.7 percent. These results confirm Software AG’s growing relevance in the global IT market and underline the company’s increasing momentum in strategic IoT and Industry 4.0 projects, which lay the foundation for further profitable growth.Software AG CFO Arnd Zinnhardt added: “There is enormous growth potential in the global IoT market. This is why we established a new business area on IoT / Cloud. We have built a solid foundation for dynamic, exponential growth, and we are convinced to outperform the market in 2018.”

Asure Software Makes 3 Strategic Acquisitions
Austin, TX – January 2, 2018 – Asure Software, Inc, a provider of Human Capital Management (HCM) and workplace management software, has closed three strategic acquisitions and provided financial guidance for the fiscal year ending December 31, 2018. All three strategic acquisitions completed on January 2nd. They were: TelePayroll Inc., a Southern California-based provider of HR, payroll and employee benefits services; Pay Systems of America, Inc., a provider of HR, payroll and employee benefits services; and Savers Administrative Services, Inc., a certified third-party administrator of payroll and HR services. All three companies are current resellers of Asure’s leading Human Resource Information System platform, Evolution. “These acquisitions are consistent with our strategy to augment our solid organic top line growth with select, accretive acquisitions of service bureaus already using our software,” said Asure CEO, Pat Goepel. We are confident that we can quickly and effectively integrate these acquisitions into our business, and be able to achieve meaningful revenue and EBITDA improvements in 2018.” The acquisitions are expected to generate approximately $13 million of revenue, in aggregate, in 2018.

Iron Mountain acquires OEC Records Management strengthening its leadership position in India market
New Delhi – December 20, 2017 – Iron Mountain Incorporated®, a global organisation, specialising in storage and information management services, has announced the acquisition of OEC Records Management, providers of records management, imaging services and offsite storage of media, expanding its presence and strengthening the company’s leadership position in India. The acquisition will add 16 facilities across 10 locations, and a storage volume of 4 million cubic feet. As a part of their strategic expansion plans, the company continues to increase its presence in emerging markets through acquisitions, and now offers a network of 73 facilities in 15 locations in India – including Mumbai, Delhi, Chennai, Bangalore, Kolkata, Hyderabad, Pune, Ahmedabad as the major centers.– for the delivery of records and information management, data management and secure destruction services to more than 2,600 customers. Total consideration was approximately $18 million.

Humana Announces Agreement to Acquire a 40 Percent Minority Interest in Kindred’s Homecare Business for Approximately $800 Million Through a Joint Venture with an Entity Owned by TPG Capital and Welsh, Carson, Anderson & Stowe
LOUISVILLE, Ky.- Humana Inc has announced it has signed a definitive agreement to acquire a 40 percent minority interest in the Kindred at Home Division (Kindred at Home) of Kindred Healthcare, Inc., the nation’s largest home health provider and second largest hospice operator, for estimated cash consideration of approximately $800 million, including Humana’s share of transaction and related expenses to facilitate a complete separation from the Long Term Acute Care and Rehabilitation businesses (the Specialty Hospital company). The transaction and related expenses include, among other costs, bond breakage fees, the extinguishment of certain legacy liabilities, the acceleration of certain stock awards, and advisory fees and expenses. The implied enterprise value of Kindred at Home is $3.15 billion before these expenses.

Smartron partners with and invests in Hyderabad based IoT startup MiQasa
India, December, 2017: Smartron, India’s first global OEM and IoT brand, has partnered with and invested in Hyderabad-based IoT startup MiQasa that designs and develops range of smart things for home from smart switches, locks, cameras, lights, appliances and controls for home automation and will now be christened tronX things, a Smartron company. This partnership is in line with Smartron’s vision of building a strong product ecosystem in India and extending the capabilities of the tronX™ platform to promising startups to showcase their products through a global platform. Both companies are built on strong pillars of ‘designed and engineered in India’ and this synergy will enable them to work together to bring world class products and solutions for home automation in India. Commenting on the partnership, Mahesh Lingareddy, Founder and Chairman, Smartron said, “Smartron was founded with a vision of building a strong product ecosystem in India across IoT verticals ranging from personal to home to health and infrastructure and this association with MiQASA is one more step in that journey.