Acquisition of Rowanwood--property asset mgmt Marks Pluribus' Second Acquisition in the Property Asset Management Space
TORONTO, May 30, 2022 /PRNewswire/ - Pluribus Technologies Corp. (TSXV: PLRB) ("Pluribus" or the "Company"), a growing acquiror of small, profitable software companies, today announced that pursuant to a share purchase agreement dated May 30, 2022, the "Share Purchase Agreement") it has acquired (the "Acquisition") all of the issued and outstanding shares of Rowanwood Professional Service Limited ("Rowanwood" or "RPSL").
Based in the United Kingdom, Rowanwood is a provider of housing asset management solutions. The Apex software supports the management and evaluation of maintenance programs by cataloguing an inventory of assets and their condition, tracking investment planning and supplier allocation, and providing financial management and project audit, along with key performance indicator review. RPSL's customers include local authorities and housing associations, predominantly in the UK.
"With our growing portfolio beginning to gain momentum and generate improving performance, and having secured our new credit facilities, we are executing on the same transaction cadence that we delivered in 2021," said Richard Adair, CEO of Pluribus Technologies. "Rowanwood's solution set is highly complementary to that of previously acquired Pluribus portfolio company Assured Software, which specializes in jobsite management tools for construction and restoration. Given the highly adjacent nature of the two solutions, we see opportunities to provide real-time communications between asset managers and their tenants as well as enhanced monitoring and analysis of planned maintenance. This improved functionality is expected to support cross-selling of an expanded suite of advanced solutions on the part of both companies."
"Over the past five years, Rowanwood has redeveloped its asset management technology and, more recently, developed a new product offering to help property organisations meet their carbon net zero challenges by 2030 and beyond," said Andy Rendell, Managing Director of Rowanwood Professional Services Limited. "We are delighted to be joining Pluribus Technologies and believe we can enhance their property asset management vertical and expand the business into new geographies and regions. We firmly believe this is a great opportunity for Rowanwood, our employees and our customers, and will help accelerate our brand recognition in the markets we serve both here in the UK and overseas."
Acquisition Rationale
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Rowanwood has a long history as a profitable technology business with an established operational track record, including a diverse group of property managing customers across the UK;
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Further strengthens Pluribus' presence in the digital enablement vertical with a particular focus on the property asset management and contracting space;
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Highly complementary solution offering to that of existing portfolio company, Assured Software, with numerous potential product synergies and cross-selling opportunities, including overseas;
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Pluribus' second acquisition in the UK, growing the portfolio's footprint in the country; and
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Potential to attract additional complementary software solution acquisitions by leveraging growing critical mass in the property asset management space.
Terms of the Acquisition
Pursuant to the terms of the Share Purchase Agreement, the Company will pay RPSL an aggregate of approximately £3.6 million ($5.8 million) in cash, as well as an earn-out based on the achievement of future performance targets by Rowanwood. The price paid for the acquisition falls within Pluribus' historical target range for Adjusted EBITDA1 and the acquisition is expected to be immediately accretive.
Andy Rendell, the Managing Director of Rowanwood, will remain involved in Rowanwood post-acquisition to ensure a smooth integration into the Pluribus portfolio of companies.