Tax Software Acquisitions, Pt. 1
Utilizing credible sources, we have provided some of the requested information involving Sovos, Intuit, and Roper Technologies. On the attached spreadsheet, our findings are available in columns D through G of rows three through eight.
- According to a Sovos Compliance press release, the terms of the deal for the acquisition of Foriba is not disclosed.
- Deloitte served as the financial advisor of Sovos Compliance in acquiring Foriba, while Gökçe provided legal counsel to Foriba and its investors, IFC and Revo.
- Sovos Compliance acquired Paperless for approximately $90 million.
- Based on the most recent report of Corum Group M&A involving its Tech M&A (Quarterly Report: Q3 2017), Paperless had a 20.3x EV/EBITDA and 4.27x EV/S.
- Roper Technologies acquired PowerPlan for about $1.1 Billion.
- Thoma Bravo, which operates as a private-equity agency sold PowerPlan to Roper Technologies. William Blair & Company, L.L.C. acted as PowerPlan's exclusive financial advisor for its acquisition to Roper Technologies.
- As of Q2 2018, the EV/S and EV/EBITDA of PowerPlan is not publicly available.
- As of Q2 2018, the EV/Revenue (enterprise value to revenue) of PowerPlan is reported as 7.3x.
- When PowerPlan was acquired by Thoma Bravo in 2015, its TGE EV/S and EV/EBITDA was 19.79x (EV/EBITDA) and 3.67x (EV/S).
Our research began by checking to see if the price of acquisition of Intuit, Sovos, and Roper Technologies were publicly available. However, after analyzing both the acquirers and the acquired companies' press releases for the acquisition activities, Crunchbase profiles, and third party publications such as business news, press releases, etc., we discovered that the price of acquisition for Exactor, ShipCompliant, Foriba, Paperless, and Invoiceware International was undisclosed. We assumed the reason was that these companies are private (according to their Crunchbase profiles), and are not required to reveal the amount publicly. Only two of the acquired companies' price acquisitions were available (PowerePlan and Foriba). Therefore, we provided the names of the investment banks.
We were able to locate the multiple utilized for Foriba using its EV/EBITDA (Enterprise Value/EBITDA) and EV/S (Enterprise Value-to-sales), while only the EV/REV or (Enterprise Value to Revenue) is available for PowerPlan. The EV/EBITDA and EV/S of PowerPlan was not publicly available based on two corroborating sources (s11 and 12), and the only EV/EBITDA and EV/S for PowerPlan that was available concerned the acquisition of Thoma Bravo (Private-Equity firm that sold PowerPlan to Roger Technologies) (s13).
Additionally, we were unable to find any involvement of investments banks representing the acquirer and acquired companies after three distinct search strategies.
First, we performed a thorough search for both the acquirer and acquired company press releases, newsroom, and investor presentations to find the summary, overview, and details for the acquisition activity. Using this research strategy, we only found the strategic plan/purpose of the acquisition, company details (e.g., services and capabilities for both acquirer and acquired company), and non-relevant data.
Next, we checked for business media coverage and business intelligence resources such as Markets Insider, PRNewswire, ZDNet, and Markets Financial Times, among others. We were unable to determine the involvement of any investment banks in the acquisition transaction. However, we discovered mentions that a financial advisor and legal counsel/advisor, such as Deloitte, served as the financial advisor of Sovos Compliance during the acquisition of Foriba, while Gökçe provided legal counsel to Foriba and its investors, Revo and IFC (s14). Meanwhile, William Blair & Company, L.L.C. served as exclusive a financial advisor for PowerPlan in the acquisition of Roper Technologies (s15).
Finally, we consulted company databases such as Crunchbase and Pitchbook, which provides merger and acquisition(M&A) activities and related news. Also, we visited merger and acquisition sites such as Merger Alliance, Corum Group M&A, and PetskyPrunier, among others. Nevertheless, we were unable to locate any involvement of investment banks in the transaction for both acquirer and acquired companies. Most of the available data we found was the same details we discovered in our first strategy.