JPIM: Cartika acquisition & webinar summary Big news from JPIM today & yesterday with the announcement that they're to acquire Cartika and expand into managed Infrastructure as a Service (IaaS) for mid-market businesses!
I attended JPIM's webinar regarding the Cartika acquisition today & incorporated those highlights below:
Cartika offers an IaaS solution, specializing in managed coud support with the objective to ensure clients remain compliant through IT, Governance and Cyber Security.
- Revenues of ~$1.5M with EBITDA of $128K for 12 months ended Dec 31, 2021
- Full service IT infrastructure provider
- 95% of revenues are recurring
- Over 200 customers
- Focused on mid-market enterprise size
- Profitable & longstanding business
The acquisition is a significant milestone for JPIM as it is highly accretive, highly strategic & will contribute significantly to JPIM's revenue, accelerating EBITDA breakeven.
- Pro Forma Fiscal 2023 revenue of $3.5M to $4.9M (Revenue growth of ~135% from fiscal 2022 of $1.68M)
- New revenue opportunities arise from cross selling to non-overlapping customer bases for provide additional upside
- Accelerates EBITDA breakeven by approx one quarter
- Acquisiton done only by cash on hand
- Cartika's CEO will be joining the JPIM team
Both JPIM and Cartika will experience immediate benefits as this is a complementary acquisition, including:
- Longer term, co-development of self-provisioning, secure and automatically backed up/restored, eCommerce business systems
- Increased drive for revenue synergies
- Quick cross-selling into customer bases
- Extended capabilities for customer bases
JPIM emphazised that this acquisition nearly doubles revenue from JPIM's Fiscal 2022 guidance, increasing the subscription revenue share from the mid 70% range to the mid 80% range with 140% YoY growth.
To summarize, this acquisition furthers JPIM mission to "become the only product management tool that merchants need at a price they can afford" by allowing JPIM to offer a fully integrated all-in-one business management experience by leveraging Cartika's IaaS platform.
In utilizing Cartika's solutions, JPIM will develop a robust self-provisioning cloud hosting capability for merchants, rounding out its capability and providing support for the security, governance and SaaS cloud hosted platform management side of JPIM.
Once JPIM provides a replay link I'll share it here as JPIM is definitely one to keep an eye on from here on out IMO
News release: https://ca.finance.yahoo.com/news/jasper-acquire-cartika-expanding-managed-214500834.html