Limeade (ASX:LME) - CEO, Henry Albrecht
CEO, Henry Albrecht
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  • Human resource tech business Limeade (LME) snaps up US-based TINYpulse for around $12 million
  • The businesses have complementary tech platforms made to streamline communication within companies and improve employee experiences
  • Limeade Founder and CEO Henry Albrecht says the COVID-19 pandemic brought about a renewed focus on employee well-being
  • Under the purchase deal, Limeade will buy and then merge with TINYpulse for US$8.8 million (A$12 million), which can be funded from existing cash reserves
  • Shares in Limeade are down 2.63 per cent and trading at 74 cents each at 3:26 pm AEST.

Human resource tech business Limeade (LME) is buying up US-based TINYpulse for around $12 million.

Limeade said this morning the two businesses would merge to form one entity committed to helping businesses create healthy employee experiences.

Employee experience specialists

Limeade’s tech platform is designed to create better employee experiences at work by streamlining communication between employers and their workers. Additionally it can offer data and insights into how employees are tracking — both in their work performance and workplace happiness — to managers and business owners.

Through various surveys, dashboards, and insights, the Limeade tech helps employers keep employees engaged and connected.

Meanwhile, TINYpulse’s tech is branded as an “employee listening” software designed to increase internal communication within a company and reduce employee turnover — making it highly complementary to Limeade’s tech.

Both companies are based in Washington.

Limeade Founder and CEO Henry Albrecht said the COVID-19 pandemic had reinforced the idea that well-being is foundational to healthy employee experiences, which in turn lead to better business results.

“Limeade Institute science tells us that listening, learning and acting on employee feedback is a top driver of well-being actions,” Mr Albrecht said.

“By adding TINYpulse listening capabilities, Limeade is poised to deliver the next-generation employee well-being solution that fits seamlessly into people’s daily work.”

Limeade said according to marketing intelligence firm IDC, 44 per cent of organisations worldwide — and 47 per cent in the US — were planning to increase spending on their employee experience tech.

According to Limeade, TINYpulse serves more than 500 businesses, both small and large.

As such, by buying up TINYpulse, Limeade will gain direct access to mid-market customers looking to upgrade their employee experience tech.

The merger

Under the purchase deal, Limeade will buy and then merge with TINYpulse for US$8.8 million (A$12 million).

On top of this, some earn-out payments will be made based on the merged business hitting some revenue milestones over the 18 months after the purchase is made.

Limeade did not specify what these earn outs will entail.

The company said it would be able to fund the purchase fully through existing cash reserves.

According to Limeade, TINYpulse ended the 2020 financial year with $6.5 million in continuing revenue and an adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) loss of $1.2 million.

Shares in Limeade were down 2.63 per cent and trading at 74 cents each at 3:26 pm AEST. The company has a $184.6 million market cap.

LME by the numbers
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