Franchise Brands acquires software developer Azura for £1m
By Josh White
Date: Monday 29 Nov 2021
(Sharecast News) - Multi-brand franchisor Franchise Brands has acquired the entire issued share capital of franchise management software system developer Azura Group, it announced on Monday.
The AIM-traded firm said that, having worked in partnership with Azura in recent years, the acquisition would enable it to consolidate its software development and secure ownership of the related intellectual property created to date, as well as bring Azura's skilled team in-house.
Its board said there was also an opportunity to use Franchise Brands' experience to grow Azura's business, by improved development of its end-to-end franchise management software-as-a-service (SaaS) platform, to enhance sales to other franchise businesses in the UK and overseas.
The gross consideration for the acquisition was £1m, payable as £0.85m in cash and £0.15m in Franchise Brands shares.
Franchise Brands said the vendors had warranted that the cash in Azura's balance sheet at completion would be at least £0.175m, resulting in a net consideration of £0.825m.
Simon Pullum had agreed to continue as a director, and Sean McAree would continue as software architect, with Azura set to operate on an arm's-length basis within the group.
The company said it believed the acquisition would be earnings-enhancing in the first full year following acquisition.
"I am delighted to announce the acquisition of Azura, which represents an important step in the group's digital journey," said executive chairman Stephen Hemsley.
"Given the ever-increasing importance of technology to the Group and the role Azura has played in the development of our 'Vision' works management system at Metro Rod and Metro Plumb, the acquisition of Azura has a strong strategic and commercial rationale in that it consolidates and secures our software development and key IP, as well as bringing an excellent team.
"We also see an opportunity to grow Azura through combining Franchise Brands' resources, expertise and experience with Azura's pre-eminent franchise management SaaS platform to enhance sales to other franchise businesses both in the UK and overseas."
At 1105 GMT, shares in Franchise Brands were up 0.72% at 140p.
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