Asure Software, Inc. (NASDAQ: ASUR) completed the acquisition of PeopleCube, its largest competitor in the workplace management software market, on July 2, 2012.
“PeopleCube’s product suite of workplace management solutions helps companies improve efficiencies in workplaces every day, and is directly in line with the Asure Software strategy,” said Pat Goepel, Asure’s Chief Executive Officer. “We are excited to integrate best practices of the PeopleCube product line to the Asure solution set. The enterprise service model will greatly improve our ability to bring solutions to companies of all sizes in a much larger marketplace.”
Post-acquisition, ASUR now services more than 11,000 clients globally. The addition of synergistic product offerings from PeopleCube expands ASUR’s product portfolio, creating tremendous cross-selling opportunities amongst its substantial customer base, which includes blue-chip clients such as GE, Microsoft, FedEx, KPMG, and Deutsche Bank.
“Given the product and business synergies between PeopleCube and Asure Software, this acquisition is a win-win for clients of both organizations,” added Steven Rodriguez, Chief Operating Officer for Asure. “We have the ability to enhance our customer offering in existing verticals while expanding into additional key vertical markets ranging from small business to enterprise clients on a global scale. No other company has the ability to serve that market potential.”
Acquired for a combination of cash, stock and a seller’s note, PeopleCube provides immediate top and bottom-line impact to ASUR. The Company has raised its third and fourth quarter 2012 revenue guidance to $6.9 million to $7.1 million and $7.8 million to $8.1 million respectively. Its third quarter and fourth quarter 2012 EBITDA guidance has increased to $1.1 million to $1.3 million and $1.9 million to $2.2 million respectively. For 2013, ASUR has provided guidance of $31 million in revenues, $9 million EBITDA, and $7.0 million of free cash flow.
Prior to the acquisition, RedChip Research reaffirmed its strong buy on ASUR with a price target of $15.90. Sign up for the free RedChip Money Report newsletter to be notified when our analysts provide an update to the price target to reflect the PeopleCube acquisition. Visit www.redchip.com or contact a specialist today to learn more about ASUR.
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