LiveTiles (ASX:LVT) - Co founders, Karl Redenbach (left) and Peter Nguyen Brown (right)
Co founders, Karl Redenbach (left) and Peter Nguyen Brown (right)
Source: LiveTiles
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  • Digital workplace software company LiveTiles (LVT) is buying out Portugal-based BindTuning for US$10 million (A$14 million) as part of a two-year deal
  • Under the deal, LiveTiles will first pay US$540,000 (A$760,000) for a 19.99 per cent stake in BindTuning, with BindTuning then having two years to hit some key revenue milestones
  • BindTuning will need to reach US$4 million in annual recurring revenue over two years, at which point LVT will pay the remaining US$9.46 million for full control of the business
  • The two companies plan to create a brand new “Employee Experience” solutions marketplace, which will be underpinned by BindTuning’s Automate 365 platform
  • Shares in LiveTiles are up 3.57 per cent to 8.7 cents each at 11:41 am AEDT

Digital workplace software company LiveTiles (LVT) is buying out Portugal-based BindTuning for US$10 million (A$14 million) as part of a two-year deal.

Under the deal, LiveTiles will first pay US$540,000 (A$760,000) in a mix of cash and scrip for a 19.99 per cent stake in BindTuning. After this, BindTuning will have two years to hit some key annual recurring revenue (ARR) milestones before LiveTiles takes full control of the business.

Specifically, BindTuning will need to reach US$4 million (A$5.6 million) in ARR over the next 24 months, after which point LiveTiles will pay US$9.46 million (A$13.3 million) for the remaining 80.01 per cent of BindTuning. Again, this final payment will be made in a mix of cash and scrip.

LiveTiles Co-Founder and CEO Karl Redenbach said the company was “very excited” to welcome the BindTuning team to the LiveTiles group.

“With both technology stacks and vision, we believe there is immense opportunity to deliver exceptional experiences to current and future customers and further drive our collective market share within the growing employee experience space,” Mr Redenbach said.

“This increased technology capability and access to large customers really helps drive our strategic goals that were communicated to the market in August this year.”

Meanwhile, BindTuning Founder and CEO Beatriz Oliveira said she was looking forward to capitalising on LiveTiles’ vision, investment, and growth.

“Having founded BindTuning in 2011 and working in technology for over 20 years, I’ve always had an ambitious vision for the evolving market which we work in,” Ms Oliveira said.

As part of today’s deal, LiveTiles and BindTuning will kick off a sales partnership to incentivise both parties to re-sell each other’s products and services to market. LiveTiles will also provide corporate support to BindTuning to help the company reach its ARR milestone targets as part of the purchase deal.

Complementary services

Both LiveTiles and BindTuning provide digital workplace software services to improve employee experiences across a variety of sectors.

Together, the companies plan to create a brand new “Employee Experience” solutions marketplace, which will be underpinned by BindTuning’s Automate 365 platform. This marketplace will provide a subscription-based set of software solutions to common employee experience challenges.

LiveTiles said through the marketplace, the two companies will be able to expand their global reach by offering extra support, automation, and product enhancements to their customer bases.

As it stands, BindTuning works with over 200 customers, the top 50 of which cover over four million employees around the globe, according to LVT.

BindTuning turned over $1.4 million in revenue and $260,000 in net profit over 2020.

Shares in LiveTiles were up 3.57 per cent to 8.7 cents each at 11:41 am AEDT. The company has an $83.6 million market cap.

LVT by the numbers
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