Clare Capital is pleased to announce the sale of Snapper to Allectus Capital. Clare Capital advised Infratil, the previous owner of Snapper, on the successful transaction.
The full announcement can be found here.
Clare Capital Blog
Clare Capital advises the NZX on the sale of its business unit to Zenith Investment Partners
Clare Capital is pleased to announce the sale of NZX’s FundSource business unit to Zenith Investment Partners. Clare Capital advised NZX on the successful transaction.
The full announcement can be found here.
Clare Capital Technology Insight Reports
Clare Capital produces a free, weekly two-page, graphic-heavy technology insights report on a range of topics from
See attached some previous examples of our weekly technology insight reports:
If you would like to be added the distribution list. Email Mark Clare at mark.clare@clarecapital.co.nz
As always, questions, comments and new subscribers are all welcome.
Clare Capital advises ProActive Software on its sale to ELI Global
Clare Capital advised Software-as-a-Service (SaaS) business ProActive Software on its sale to ELI Global.
ProWorkflow, the product behind ProActive Software, is a fully featured project management, workflow and time management tool, supplied as a SaaS solution.
Clare Capital advises Computer Power Plus on its sale to Whitecliffe Enterprises
Clare Capital advised IT tertiary provider Computer Power Plus (a joint venture between Whitireia NZ and WelTec) on its sale to Whitecliffe Enterprises.
Computer Power Plus is a specialist IT training institute that provides a wide of range of NZQA approved IT programmes from Certificate to Advanced Diploma level.
A copy of the Press Release can be found here: https://www.whitecliffe.ac.nz/news/computerpowerplus/.
Clare Capital advises Touchtech on its merger with Springload
Clare Capital is pleased to announce it advised Touchtech on its merger with Springload.
Touchtech is a product design and engineering studio building web and mobile applications. Springload creates websites and apps that improve businesses and people’s lives. The combined business is now the largest independently owned digital agency in Wellington, with 70 staff.
A copy of the Press Release can be found here: https://touchtechlabs.com/insights/touchtech-springload-merger/
Clare Capital advises COMSMART on its sale to Fortlock Holdings
Clare Capital is pleased to announce it advised COMSMART on its sale to Fortlock Holdings.
COMSMART is an IT services company based in Wellington (NZ). It services include:
- Consulting – business and data analysis, performance monitoring, roadmap planning.
- Professional Services – design, architecture, project management, implementations, site audits and project work.
- Managed Services – maintenance and support through Service Level Agreements and T&M based Service Desk support.
- Product Sales – hardware and software sales to regular customers as well as the general public.
- Recruitment – sourcing the right people for customer’s internal IT resource requirements.
This is the fifth deal Clare Capital has completed in the last twelve months.
A copy of the Press Release can be found here: http://www.scoop.co.nz/stories/BU1711/S00884/fortlock-group-acquires-comsmart.htm
Clare Capital in the Media
National Business Review – 28th May 2018 – https://www.nbr.co.nz/article/nzx-asx-technology-companies-equally-dismal-boardroom-diversity-ck-216016
National Business Review – 7th May 2018 – https://www.nbr.co.nz/article/xero-shares-close-all-time-high-ck-p-215345
Television New Zealand – 17th November 2017 – https://www.tvnz.co.nz/one-news/business/its-profit-hes-created-rod-drury-cash-in-xero-shares-netting-almost-95-million
National Business Review – 14th November 2017 – https://www.nbr.co.nz/article/xero-shares-plunge-after-fnzc-downgrade-ck-209937
National Business Review – 10th November 2017 – https://www.nbr.co.nz/article/bulk-xero-liquidity-nzx-data-show-th-p-209784
Australian Business Insider – 13th September 2017 – https://www.businessinsider.com.au/xero-growth-story-2017-9
National Business Review – 14th August 2017 – https://www.nbr.co.nz/article/asx-no-green-pasture-nzs-young-companies-cs-p-206393
Australian Business Insider – 8th August 2017 – https://www.businessinsider.com.au/16-australian-tech-companies-that-spend-more-on-staff-than-their-revenue-2017-8
National Business Review – 2nd August 2017 – https://www.nbr.co.nz/article/which-nzx-tech-companies-are-most-and-least-efficient-their-staff-cg-p-205960
Tech Updates – Complete Series #1-17
Since July, Clare Capital has been producing a weekly, two-page Tech Update incorporating different charts and listed company analysis for our distribution list. The Updates have included:
- SaaS Revenue per Employee;
- Remuneration vs Performance;
- Capital Used vs Recurring Revenue;
- Cash Burn & Runway; and
- The 40% Rule (which was highlighted by Michael O’Donnell in an October Stuff article).
On the back of the first FounderCon, which Clare Capital sponsored, we have released the Complete Series of Tech Updates #1-17 [this link takes you to the full report] on our Blog and on the ShowGizmo app.
Please feel free to download and share around with anyone who you think would find it useful.
Contact us if you would like to be on the distribution list.
Don’t confuse ARR and Forward Revenues
Not all revenue multiples are equal.
99%> of the time EV/ARR multiples should be greater than EV/Forward Revenue multiples, it is therefore very important to understand the difference between the two.
In both of these multiples, the Enterprise Value (EV) remains constant, it is the measure of revenue that is changing. Annualised Recurring Revenue (ARR) is the current Monthly Recurring Revenue multiplied by 12, whereas the Forward Revenue is the total forecasted revenue for the next financial year. Assuming the company is growing, then Forward Revenue will always be higher than ARR and therefore, EV/Forward Revenue will always be lower than EV/ARR.
The relationship between EV/Forward Revenue and EV/ARR is explained by growth. The faster a company is growing the bigger the difference between EV/ARR and EV/Forward Revenue multiples.