Vancouver-based endpoint security solutions provider Absolute Software has acquired privately held SaaS company LiveTime Software for "less than $15 million."
LiveTime, which is headquartered in California, gives IT departments a platform to migrate their service from one of reactive incident response to a more holistic approach involving the entire business, its processes and workflows. With LiveTime in place, IT can provide customer assistance, streamline technology costs, implement workflows for service requests, incidents, change requests, releases and service level agreements, and audit compliance with policies and regulations, according to Absolute.
"The benefits of this transaction are twofold," said John Livingston, CEO of Absolute Software. "First, LiveTime will quickly meet the needs of Absolute Manage customers that are looking for help desk and service management functionality. This need was identified in the Gartner Magic Quadrant for Client Management Tools, and has been a regular request from our customer base. Second, LiveTime products, which will be re-branded as Absolute Service and Absolute Help, open up another $4 billion market for Absolute. By leveraging our traditional technology strengths and sales infrastructure, we are well positioned to penetrate this market and to generate long-term organic growth."
LiveTime's products will be rebranded as Absolute Help and Absolute Service.
"We are excited about the accelerated growth opportunity this transaction creates for our LiveTime technology," said Dr. Darren Williams, CEO of LiveTime. "By joining Absolute, we gain access to more robust sales channels as well as a larger marketing, research and development, and customer support infrastructure. Further, Absolute's SaaS and on-premise solutions perfectly complement our offerings, which will create a best-of-breed solution platform for our mutual customers. We have already been winning deals over the leading ITSSM vendors and expect this transaction to rapidly increase our market penetration."
The cash-and-stock deal is expected to complete by the end of this month, according to a release from Absolute:
The total cost of the acquisition is less than $15 million and consists of a mixture of cash and stock, of which approximately 60% is due on completion with the remainder due based on a three year earn-out. Absolute expects this transaction to be neutral to cash from operating activities in fiscal 2013 and accretive to cash from operating activities in fiscal 2014. Absolute intends to complete this acquisition on or around November 19, 2012, subject to approval by the Toronto Stock Exchange.
"With LiveTime, we are acquiring market-leading technology together with the key people who built it and who are truly visionaries in their space," added Mr. Livingston. "These are the same characteristics that made our last acquisition great. LiveTime complements our existing offerings, giving us a unique platform amongst the leading ITSSM vendors. We will leverage our existing sales channels, Software-as-a-Service business model, current customer base and unique embedded position in computer firmware to drive growth over the long-term. We welcome the LiveTime team and look forward to becoming a major player in the help desk and ITSSM market."