Tribal Group, the London-listed software provider, has acquired Semestry Limited, a cloud-based timetabling software provider to higher education institutions, in a deal worth up to £6 million.
The acquisition will expand Tribal’s product portfolio, adding scheduling and timetabling capability to the group’s Tribal Edge suite of higher education solutions, the firm said in a statement.
The takeover entails an initial cash consideration of £4.5 million with a further £1.5 million contingent cash consideration, or earn-out, based on achieving incremental increases in annual recurring revenue (ARR) over a two year period from completion.
The acquisition will be financed out of the group’s existing cash resources of £10.2 million.
Semestry currently has 21 clients in five countries, including University of Cambridge, University of York, Manchester Metropolitan University, Birmingham City University, University of Amsterdam, Aarhus University (Denmark), Universiteit Hasselt (Belgium) and Reykjavik University (Iceland).
Semestry’s ARR at the date of the acquisition was £900,000. The firm’s ARR grew by more than 40% over the past 12 months.
Mark Pickett, chief executive of Tribal Group, said: “We are delighted to welcome the Semestry team to Tribal Group as we deliver on our strategy to provide complete, integrated Student Information Systems delivered as SaaS solutions in the public cloud. Semestry has developed and delivered market-leading SaaS solutions which, with their strong client relationships, will open up an exciting opportunity for Tribal and expand our Tribal Edge ecosystem of best-in-breed student management applications. “The group remains selective in its approach to acquisition opportunities which will focus on cloud-based solutions, as well as building a partner ecosystem of best-of-breed solutions which maximises the value-add for our current customers.”
Date published: 16 April 2021