Altus Group Completes Acquisition of Finance Active - Seite 2

Founded in 2000, Finance Active is a leading European provider of debt management and financial risk management SaaS solutions for treasury and investment management serving public, corporate and financial institutions. Utilizing its multi-tenant and API-friendly SaaS cloud platform, its solutions help clients digitize and automate time-consuming and complex tasks with a centralized view of real-time financial information and a wide range of monitoring, valuation, reporting and benchmarking tools. The company is headquartered in Paris, France, with a wide geographic footprint in Europe including over 3,000 customers ranging from small-to-medium businesses to large, global institutions. Finance Active’s team of approximately 160 professionals will be integrated with the Company’s Altus Analytics business.

The transaction is expected to strengthen the Company’s recurring revenue base while providing opportunities for both acquisitive and organic growth to Altus Group’s 2021 revenues and Adjusted EBITDA. As a market leader, Finance Active has steadily been growing its topline, generating gross revenue of approximately €25.0 million (approximately C$38.3 million) in 2020. Supported by multi-year subscription contracts and a mid-90% gross retention rate, approximately 90% of Finance Active’s revenues are recurring, consistent with Altus Group’s Over Time revenue definition. Over the past three years Adjusted EBITDA margins have been in the 20% range. As required by IFRS, Altus Group will have an accounting adjustment on Finance Active’s deferred revenues in 2021 which will also impact the Adjusted EBITDA margins in 2021 before they return to a more normalized run-rate in 2022. Longer term, with the enhanced growth profile provided by joining Altus Group, Finance Active’s profitability and Adjusted EBITDA margins are expected to increase. The acquisition is expected to be financially accretive to Altus Group’s adjusted EPS starting in 2022.

The purchase price of this acquisition was approximately €106.5 million (approximately C$157.7 million), subject to adjustments. On closing, Altus Group paid a total of €89.2 million (approximately C$132.1 million) in cash, funded by drawing down on the Company’s credit facility. In addition, Altus Group issued 303,177 common shares to certain members of Finance Active’s management team, in consideration of the acquisition of their shares. These common shares will be held in escrow and will vest and be released over three years on each anniversary of the closing date, subject to continued employment and compliance with certain terms and conditions. As part of the purchase price, €4.8 million of cash (approximately C$7.1 million) is payable over two years after closing, subject to certain conditions being met.