Asure Software (ASUR) Announces Acquisition of Legiant and Raises 2012 Guidance
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Price: $8.74 +3.68%
Financial Fact:
Income/(Loss) From Operations Before Income Taxes: 362K
Today's EPS Names:
BTTX, VAXX, ELYS, More
Financial Fact:
Income/(Loss) From Operations Before Income Taxes: 362K
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Asure Software, Inc. (Nasdaq: ASUR) announced today that it has acquired Legiant, an Austin, Texas-based provider of cloud computing time and attendance software and management services.
On December 14, 2011 Asure entered into an asset purchase agreement to acquire Legiant for $4 million, comprised primarily of $1.2 million cash paid at closing, a $1.8 million seller's note, $0.5 million in assumed debt, $0.25 million in cash acquired as part of the acquisition, and $0.25 million in a short term note due in January, 2012.
The company forecasts revenue of $3.53-$3.63 million for Q4 and sees positive earnings for both Q4 and FY11.
For FY12, Revenue is expected to total $18 million.
"This acquisition fits with our cloud growth strategy via high synergy / low integration risk transactions," said Pat Goepel, Asure's Chief Executive Officer. "We are excited to enhance our workforce management solution while utilizing our sizable tax loss asset to create meaningful client and shareholder value.
David Scoglio, Asure's Chief Financial Officer explained, "Due to continued strong cash generation, projected at $0.75 million in the fourth quarter, we are pleased to announce the acquisition of Legiant without any additional third party debt. With the addition of Legiant, Asure is upgrading its guidance for 2012 to $18 million in revenue and $4 million in EBITDA*. Guidance for the current fourth quarter of 2011 remains unchanged. Please see the table above and the upcoming 8-K for additional details."
On December 14, 2011 Asure entered into an asset purchase agreement to acquire Legiant for $4 million, comprised primarily of $1.2 million cash paid at closing, a $1.8 million seller's note, $0.5 million in assumed debt, $0.25 million in cash acquired as part of the acquisition, and $0.25 million in a short term note due in January, 2012.
The company forecasts revenue of $3.53-$3.63 million for Q4 and sees positive earnings for both Q4 and FY11.
For FY12, Revenue is expected to total $18 million.
"This acquisition fits with our cloud growth strategy via high synergy / low integration risk transactions," said Pat Goepel, Asure's Chief Executive Officer. "We are excited to enhance our workforce management solution while utilizing our sizable tax loss asset to create meaningful client and shareholder value.
David Scoglio, Asure's Chief Financial Officer explained, "Due to continued strong cash generation, projected at $0.75 million in the fourth quarter, we are pleased to announce the acquisition of Legiant without any additional third party debt. With the addition of Legiant, Asure is upgrading its guidance for 2012 to $18 million in revenue and $4 million in EBITDA*. Guidance for the current fourth quarter of 2011 remains unchanged. Please see the table above and the upcoming 8-K for additional details."
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