PMSI provides commercial support on PROACTIS's acquisition of Perfect Commerce
PROACTIS, a global Spend Control and eProcurement solution provider, recently completed the acquisition of Perfect Commerce, a global provider of spend management solutions with operations in the US, UK and Europe, for an aggregate consideration of c.$132.5 million (approximately £102.4 million). The acquisition constitutes a reverse takeover, and was approved by shareholders on 31 July 2017.
The acquisition is consistent with PROACTIS's growth strategy, which is designed to deliver a business that is capable of addressing a growing global market demand for spend management solutions. Perfect Commerce develops and sells cloud-based, technology-led, spend management solutions for the public and private sector markets. It has complementary territorial reach with extensive international capabilities serving approximately 150 customers (largely Tier 1), with over 1.3 million users across more than 80 countries, 20 languages and 100 currencies. Further, Perfect Commerce operates its own proprietary supplier network that it calls 'The Business Network' and which has approximately 970,000 suppliers connected to it. Those suppliers are able to use The Business Network to collaborate with and transact efficiently and electronically with their customers.
Hamp Wall has been appointed as the new CEO of PROACTIS. Mr Wall, who was previously President and CEO of Perfect Commerce, is replacing Rod Jones as Chief Executive Officer, who is retiring.
PMSI supported PROACTIS throughout the acquisition process by providing a detailed analysis of the market and competitive environment. PMSI work was very well received by PROACTIS's management team and quoted several times in the AIM admission document.
Tim Sykes, Chief Financial Officer of PROACTIS, commented:
"This is a highly complementary and transformational acquisition which we expect to be earnings enhancing in the financial year ending 31 July 2018. The Acquisition will accelerate PROACTIS's growth and bring substantial global scale to the Group, positioning us to exploit the high growth areas of the spend management market and enabling us to provide our customers with an even broader product offering."
Hamp Wall, (now former) President and Chief Executive Officer of Perfect Commerce, commented:
"We are excited to be joining PROACTIS at a time of such rapid innovation in the industry. We have a highly complementary product set, customer base and geographic reach and we look forward to offering our customers an enhanced product offering."
Note: on 22nd August 2017, PROACTIS reported £25.4m revenues for the year ended 31 July 2017, up 31% over the previous year, and £7.9m EBITDA (+41%).