Elmo Software Limited (ASX:ELO), an Australian cloud-based HR & Payroll provider, acquired Webexpenses, an Oxford, UK-based expense software provider. The amount of the deal was not disclosed. Webexpenses’ annualised recurring revenue (‘ARR’) as at 30 November 2020 was £4.5 million (A$7.9 million), which has been growing at over 30 per cent annually. Revenue is 96 per cent subscription-based. Webexpenses has a large and growing customer base in the UK, with over 1,000 customers with high customer retention of 90 per cent. The business has a gross profit margin of over 90 per cent and EBITDA of £0.6 million (A$1.0 million).
ELMO CEO and Co-founder Danny Lessem said: “The acquisition of Webexpenses is an exciting and significant step in ELMO’s growth journey. The Webexpenses platform is highly complementary to ELMO’s existing offering. Customers will have the ability to manage employee expenses effectively and efficiently as part of our convergent HR and payroll solution. The cross-sell opportunity for ELMO’s comprehensive product suite into Webexpenses’ large customer base is substantial. ELMO’s market opportunity has increased markedly, and our strategic positioning is further strengthened.”
Webexpenses is a global provider of cloud-based financial management software. The company’s flagship expense management solution automates the process, creating a seamless workflow. Webexpenses has offices in the United Kingdom, the United States, and Australia.
The acquisition provides Almo with complementary technology and an established customer base to help accelerate their expansion into UK mid-market businesses.
Announcement: Elmo Software Acquires Webexpenses