Multi-brand franchisor Franchised brands has acquired all of the issued share capital of franchise management software systems developer Azura Group, it announced on Monday.
The AIM-listed company said that, having partnered with Azura for the past few years, the acquisition would allow it to consolidate its software development and secure ownership of related intellectual property created to date, as well as ‘bringing Azura’s skilled team in-house. .
Its board of directors said there was also an opportunity to use Franchise Brands’ experience to grow Azura’s business, improving the development of its software-as-a-service (SaaS) platform from end-to-end franchise management to improve sales to other franchise businesses. in the UK and overseas.
The gross consideration for the acquisition was £1 million, payable in the form of £0.85 million in cash and £0.15 million in Franchise Brands shares.
Franchise Brands said the sellers had guaranteed that Azura’s balance sheet cash on completion would be at least £0.175 million, giving net consideration of £0.825 million.
Simon Pullum had agreed to continue as Director and Sean McAree would continue as Software Architect, with Azura expected to operate independently within the group.
The company said it believes the acquisition will improve earnings in the first full year following the acquisition.
“I am delighted to announce the acquisition of Azura, which represents an important step in the group’s digital journey,” said Executive Chairman Stephen Hemsley.
“Given the ever-increasing importance of technology to the Group and the role Azura has played in the development of our ‘Vision’ work management system at Metro Rod and Metro Plumb, the acquisition of Azura has a strong strategic and commercial logic in that it consolidates and secures our software development and key IP, while bringing an excellent team.
“We also see an opportunity to grow Azura by combining the resources, expertise and experience of Franchise Brands with Azura’s preeminent franchise management SaaS platform to enhance sales to other franchise businesses globally. UK and overseas.”
As of 11:05 GMT, shares of franchise brands were up 0.72% at 140p.