-MeetingZone is a conferencing services provider with approximately 6,000 customers worldwide and international operations in Germany, Sweden and North America.
-The business has a consistent track record of profitability and grew to revenue of £22.5 million (+7.5% yoy growth), gross profit of £15.0 million (66.9% margin) and Adjusted EBITDA of £5.0 million (22.2% margin) in the 12 months ended 31 December 2017.
-LoopUp (AIM:LOOP) provides software-as-a-service solutions for remote business meetings in the United States, European Union, and internationally.
-The company also provides telephony and conferencing services.
-Headquartered in London and with offices in San Francisco, New York, Boston, Hong Kong, Barbados and Australia, LoopUp serves more than 2,000 enterprises worldwide.
-The acquisition will provide LoopUp a significant increase in scale to drive earnings through “network effect” and improving buying power with suppliers
-It is expected that that acquisition will release £2.8 million in cost synergies until Dec-2019 that will be reinvested to accelerate organic growth
-Arma Partners worked closely with the owners of MeetingZone to identify the best buyer and facilitate a very successful outcome for the shareholders which resulted in an EV/EBITDA of 12.3x based on y-o-y top line growth of 7.5%.
-Arma supported the company in the reverse takeover process with financial analysis, strategic positioning, valuation and marketing materials preparation.
-This transaction further highlights Arma Partners’ deep expertise in the communications services sector and in particular in the collaboration, UC and UCaaS markets.