GetBusy acquires pricing intelligence platform SmartPath
By Josh White
Date: Thursday 04 Apr 2024
(Sharecast News) - GetBusy announced the acquisition of the trade and assets of SmartPath on Thursday, which it described as a pricing intelligence and revenue optimisation platform tailored for the accounting industry.
The AIM-traded firm said the strategic acquisition would expand its product portfolio into the pricing and small-practice management sector within the lucrative US market.
It said it offered significant potential value to SmartVault's existing customer base, comprising over 6,000 accounting firms, and presented an enhanced revenue opportunity for the group.
SmartPath would bring to the table 15 years of experience in price consulting within the US accounting industry.
It introduced its 'Engage' pricing platform in May 2023, aimed at enabling CPA firms to streamline pricing processes, recover more revenue, mitigate scope-creep, and scale their practices efficiently.
Since its launch, SmartPath had onboarded around 140 accounting customers, generating about $0.2m in annual recurring revenue (ARR) as of 31 January.
The acquired assets operated at breakeven in the three months ended 31 January.
GetBusy said the acquisition encompassed all intellectual property and customer contracts of SmartPath, along with the assignment of necessary supplier contracts for ongoing operations.
Additionally, GetBusy said it had retained the services of SmartPath's two employees, including its founder, Will Hamilton.
The acquisition consideration included an initial cash payment of $0.25m and a further cash amount, payable in 2027.
The contingent consideration depended on the level of annual recurring revenue attributable to the SmartPath product as at 31 December 2026, with a threshold of $1m or higher.
It would escalate linearly from 30% to 50% of attributable ARR, capped at $2m, and would be payable in three equal quarterly instalments starting on 31 March 2027.
"We are delighted to add SmartPath's pricing intelligence and revenue optimisation capabilities into SmartVault's leading offering in the US accounting market," said chief executive officer Daniel Rabie.
"SmartPath's unique, proprietary insights into pricing, built over 15 years of working with accounting firms, and the revenue optimisation base it has built offers an excellent opportunity for our installed base of over 6,000 US accounting firms to optimise their customer billing and make their firms more profitable.
"We look forward to working with Will as we integrate SmartPath into our SmartVault business and add even more value to our customers and the group."
At 1400 BST, shares in GetBusy were down 0.78% at 63.5p.
Reporting by Josh White for Sharecast.com.
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