Business
Asure Software to Sell Workspace Management Business to FM:Systems for $120 Million
Asure Software to Focus on SaaS Human Capital Management (HCM) AUSTIN, Texas, Oct. 07, 2019 (GLOBE NEWSWIRE) -- Asure Software (NASDAQ:ASUR), the leading
About this update from Asure Software Inc
[{"type":"text","content":"Asure Software to Focus on SaaS Human Capital Management (HCM)\nAUSTIN, Texas, Oct. 07, 2019 (GLOBE NEWSWIRE) -- Asure Software (NASDAQ:ASUR), the leading provider of dynamic cloud-based solutions that elevate how, when and where work gets done, today announced that it has entered into an agreement to sell its Workspace Management business to FM:Systems in an asset and equity transaction valued at $120 million. This transaction enables Asure to focus on and continue to deliver its award-winning Human Capital Management (HCM) solutions to small and midsize businesses. The transaction is expected to close in approximately 45 to 60 days, subject to customary closing conditions.\n The sale of the Workspace Management business provides both Asure Software and FM:Systems with immediate opportunities to focus on key strategies and scale their respective businesses. “This strategic move allows Asure to be laser-focused on our HCM business,” said Pat Goepel, CEO of Asure Software. “Most importantly, it allows us to accelerate innovation in our payroll, time and attendance and consulting business and provides us with the capital to grow and invest in our products, our people and our clients. As we approach a new decade, we’re continually pushing boundaries to grow and expand within the HCM space by equipping small business owners and resellers across the country with the best workforce solution that streamlines all HR processes and makes work more engaging.” “This transaction bolsters Asure’s capital structure as we plan to pay down the majority of our debt. It also increases our mix of recurring revenue to over 90%. While we plan to focus on organic growth with the help of upsell and cross-sell initiatives, we will also be in a strong position to pursue accretive acquisitions. Furthermore, the transaction will be attractive from a tax perspective for our shareholders,” concluded Goepel. Over the past ten years, Asure Software has grown its Workspace Management business from $5 million to approximately $28 million in annual revenue due in part to cutting-edge product innovation. The opportunity in the real estate technology market is substantial in size and we believe that FM:Systems, which is backed by the well-known private equity firm Accel-KKR, is the logical partner to continue growth as they round out their portfolio of space manage...