French software firm acquires Vordel in cash deal
French business software group Axway is to acquire Irish software firm Vordel in an all-cash transaction deal. The purchase price has not been disclosed.
Axway Software plans to fund the deal through its existing bank credit line. It expects to grow revenues by adding Vordel’s products to its suite.
The Dublin-based company specialises in allowing different software programmes to communicate with each other. Axway specialises in managed file transfer and business-to-business systems for large organisations.
Vordel’s chief executive Vic Morris said Vordel’s technology would allow Axway to extend those services by enabling documents to be shared on mobile devices and cloud computing services with appropriate levels of governance.
“It’s a phenomenal opportunity for us. We can become the growth engine for Axway. You’ve got this large, well established very stable business that needs to grow. If you add to that a business like Vordel’s that is nimble and fast with leading-edge products, bringing those together is a dream team,” Mr Morris said.
Paris-quoted Axway was established in 2001 as part of the French systems integrator Sopra and was spun off from its parent company last year. It has 11,000 customers in 100 countries. Its net profit for 2011 was €21.5 million on revenues of €217 million. This week it announced third-quarter 2012 revenues of €50.7 million, down 6.6 per cent for the first nine months of the year.
Mr Morris said 10 investors or potential buyers expressed interest in the past six months. Discussions with Axway began this summer after the French firm approached Vordel.
Vordel employs 55 people and it is understood all will remain following the acquisition.
Originally founded in 1999, Vordel has been profitable for the past three years, Mr Morris said. In its most recent filed accounts, sales in 2010 were €6.2 million and EBITDA was €1.5 million, almost five times the amount for the prior year.
Vordel’s major shareholder, the UK VC fund Elderstreet Capital Partners, holds close to 40 per cent of the company. Elderstreet managing partner and Vordel’s chairman Paul Frew called the acquisition “a very fair deal for both parties”.
Other shareholders include Crownway Investments, Intel Capital, Hatton Investment Group, Enterprise Ireland as well as the senior management team.