- ReadyTech (RDY) acquires Open Windows with an upfront payment of $4.8 million and total consideration of up to $14.3 million
- Open Windows is a cloud-based and contract management company with majority of its customers in local and state government
- The acquisition is expected to deliver revenue of $1.5 million in the Financial Year 2022 with an EBITDA margin of 16 per cent
- Shares are trading 5.06 per cent higher today at $3.74 per share.
A cloud-based software company, ReadyTech has acquired Open Windows Software to extend its reach into the government sector.
Open Windows is a specialist in cloud-based contract management and procurement software. It receives business across the public and private sector with the majority of its customers in local and state government.
The purchase totals up to $14.3 million, with an upfront payment of $4.8 million that will be split between 84 per cent cash and 16 per cent ReadyTech shares.
Up to $9.5 million of the purchase is deferred consideration. This will be structured into earn-outs over four and a half years, with the option of cash and shares if needed.
The acquisition, completed yesterday, December 16, is expected to deliver recurring revenue of $1.5 million in FY22 with an earnings before interest, taxes, depreciation and amortization margin of 16 per cent.
Co-founder and CEO Marc Washbourne believes the acquisition will be a great addition to the company’s portfolio.
“Open Windows has a strong reputation for its modular SaaS-based approach, unique workflow process design, modern user interface, and ability to handle the complex requirements of multi-party contract management and procurement supply chains,” he said.
“Open Windows further fortifies ReadyTech’s product-market fit and is suitable to cross-sell to a broad range of our customer base. In particular, Open Windows’ focus on Local government makes it a highly strategic and compelling fit for our Government & Justice segment.”
Shares were trading 5.06 per cent higher today at $3.74 per share at 3.23 pm AEDT.