Franchise Brands acquires software developer Azura for £ 1million
Multi-brand franchisor Franchised brands has acquired all of the issued share capital of developer of franchise management software systems Azura Group, he said on Monday.
The AIM-listed company said that having worked in partnership with Azura in recent years, the acquisition would allow it to consolidate its software development and secure the ownership of related intellectual property created to date, as well as ” integrate the qualified Azura team internally. .
Its board of directors said there was also an opportunity to use the experience of Franchise Brands to grow Azura’s business, enhancing the development of its end-to-end franchise management software platform. end (SaaS), in order to improve sales to other franchise companies. in the UK and abroad.
The gross consideration for the acquisition was £ 1 million, payable in the form of £ 0.85 million in cash and £ 0.15 million in shares of Franchise Brands.
Franchise Brands said the sellers had guaranteed Azura’s balance sheet cash on completion to be at least £ 0.175million, which would translate into a net consideration of £ 0.825million.
Simon Pullum had agreed to continue as director and Sean McAree would continue as software architect, with Azura to operate independently within the group.
The company said it believes the acquisition will increase profits in the first full year after the 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 growing importance of technology for the Group and the role Azura played in the development of our ‘Vision’ work management system at Metro Rod and Metro Plumb, the acquisition of Azura has a strong strategic and commercial justification in that it consolidates and secures our key software and IP developments, as well as an excellent team.
“We also see an opportunity to grow Azura by combining the resources, expertise and experience of franchise brands with Azura’s preeminent franchise management SaaS platform to improve sales to other franchise companies. in the UK and abroad. “
At 11:05 am GMT, shares of franchise brands were up 0.72% to 140p.