Asure Software starts the new year with 3 acquisitions
Human capital management and workplace management software provider Asure Software Inc. is racing into the new year with no fewer than three acquisitions under its belt.
The company, based in Austin, Texas, announced Tuesday that it has snapped up payroll providers TelePayroll Inc. and Pay Systems of America Inc. for undisclosed amounts. In addition, Asure has acquired the payroll and human resources service provider Savers Administrative Services.
Asure said the acquisitions should help it to generate around $13 million in extra revenues in 2018.
The company is a relatively small player in the HCM and workplace management space, competing with the likes of Oracle Corp. and Workday Inc., as well as numerous smaller firms. Asure specifically targets small to medium-sized businesses with between 50 and 2,000 employees, with products aimed at helping them to manage their mobile workforces. The company boasts around 80,000 clients worldwide.
“These new acquisitions provide us with significant customer, product and financial synergies,” Pat Goepel, Asure’s chief executive officer, said in a statement. “In particular, they expand Asure’s footprint across the U.S., giving us greater coverage nationwide.”
Goepel said that the acquisition of Los Alamitos, California-based TelePayroll will help to expand the company’s presence on the West Coast, while the other two acquisitions will give it more muscle in the east.
Asure has updated its financial guidance for 2018 in light of the new acquisitions, saying it expects to pull in revenue of $78 million to $81 million for the year, up from its original projection of $70 million to $80 million. Projected earnings after certain costs such as stock compensation should be between $18 million and $20 million, the company said.
According to Goepel, Asure is now “positioned to capitalize on the robust pipeline of opportunities in front of us and remain focused on achieving our mid-term goal of surpassing $100 million in revenue.”
Asure’s shares jumped almost 6 percent on the news, to $14.96, in trading Tuesday.
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