THE DIVESTMENT CAMPAIGN
Our Client – The Vendor
Integrated Technical Software (“ITS”) is the company behind SPACE GASS – Australia’s leading software solution for structural engineers. The core application along with an ever-growing selection of extension modules allows for the multipurpose 3D analysis & design of structures such as bridges, dams, buildings, stadiums, aircraft hangars, mining & industrial infrastructure, membrane structures, towers, tanks, and more. A modular licensing model makes the product accessible to all types of users, with customers ranging from large multinational engineering firms to boutique engineering consultants to government authorities. Since its launch in 1983, SPACE GASS has become the tool of choice for Australian engineers – owing to its purpose-designed capabilities, user-friendly interface, and the regular release of upgrades and new functionality. Over the years, the Business has successfully evolved into a highly profitable concern with a long history of consistent performance including long-tail recurring revenue streams.
After 35+ years building the Business, ITS’s director sought to enter semi-retirement. He appointed Johnsons Corporate to undertake an international divestment campaign with the aim of finding a strategic acquirer willing to setup a succession strategy and with the means and capabilities to ensure continued growth and success for the organisation.
The International Business Sales Strategy
As the vendor of a leading software brand in a highly specialised industry vertical, ITS represented a very attractive opportunity for trade buyers and financial investors alike. Acquisition highlights included a long-standing customer-base, subscription-based revenues, and consistently healthy margins – all backed by a long-serving and highly skilled technical team. Further-more future growth potential was enhanced by a market-ready portfolio of SG packages adapted for use in overseas markets.
Johnsons Corporate’s custom research & marketing targeted both the Australian and international markets, with a focus on related software businesses as well as the vendors of construction software and other types of engineering applications. In addition, Johnsons commissioned secondary research into the global PE sector to identify firms whose investment parameters spanned the B2B software sector. Johnsons’ proactive direct marketing campaign uncovered a wide range of interested parties from across the different research segments. It elicited almost 40 expressions of interest and a high number of indicative offers. Further vetting and negotiations resulted in the selection of a preferred buyer, with Offer and Acceptance secured within 12 weeks of going to market.
(Read more about how using a Specialised Mid-Market Business Broker Approach to selling your business could get you a better outcome – just like our client).
The International Buyer
Sweden-headquartered StruSoft markets a range of specialised software used across the broader building & construction sector for structural analysis, design, 3D modelling, collaboration, and energy. It is a fast-growing multinational enterprise boasting users in 40+ countries and with an expanding network of localised operations. The purchase of ITS and the highly complementary SPACE GASS package marks Strusoft’s formal entry into the Australian market and its first footstep into the AsiaPacific region
What Our Client Had to Say
"In the end, I couldn’t be happier with the results. As promised, Johnsons’ approach effectively took a niche Australian software package and brought it to the attention of developers, vendors and financial buyers from around the world. This was an eye-opening introduction to the realm of software investors, and the team at Johnsons were invaluable in helping me navigate all the different participants and their ways of looking at business. Critically, Johnsons helped make sense of the wide range of offers, negotiating pricing and terms in my favour while not losing sight of my long-term goals for the Business and the importance of a strong working relationship with the new owner."
Peter Schulze, Director - ITS Integrated Technical Software