The £3.5m cash deal, inked on 30 May, follows Software Circle’s £2m purchase of a niche academic admin services firm in February, furthering Software Circle’s mission to become a “serial acquirer of vertical market software businesses".
Software Circle CEO Gavin Cockerill told Printweek that Be The Brand Experience was an obvious fit for the firm’s acquisition criteria.
He said: “We have a very set focus on the kinds of business that we want to bring into the group.
“They are software platforms that operate within a specific vertical, and Be The Brand is marketing compliance for businesses that offer financial services, which is obviously highly regulated.
“They’ve got a really good client base, and we’re excited about the team and what the platform can do; it was a really good fit for us.”
Be The Brand will retain its management team, with Software Circle taking a hands-off approach to preserve the firm’s independence and “entrepreneurial” spirit. Adam Hainsworth, Be The Brand’s managing director, will stay on with the company for a year following the acquisition to ensure a smooth transition.
Cockerill said: “We run a decentralised model, so it’s not our intention to merge or integrate the businesses [we acquire]; we want to maintain that entrepreneurial spirit, and for the brands to operate as they have been.
“We will add value where we can. There are opportunities for the businesses to learn from each other, or share best practice where it’s relevant.”
Hainsworth said: “Having developed and grown the business over 20 years alongside Guy and Jes, it was crucial to find the right owners once I had decided to step back.
“We spoke with Software Circle over an extended period, getting to know their culture and modus operandi.
“We're confident we've found the right home for Guy [Hainsworth, CTO and founder], Jes [Ongley, COO] and the rest of the team to thrive in and continue to develop our best-in-class solution for our clients."
Unaudited financial statements for Be The Brand for the year ended 31 March 2023 reported revenue of £1.6m, EBIT of £680,000 and closing net assets of £430,000.
Cockerill added that while Be The Brand does not currently deal directly with print, it may be interested in exploring the industry in the future.
He said: "We have a heavy footprint in that area, and know a lot about that market, so it's obviously a conversation to have."
Software Circle is also in talks with several other businesses as potential targets for acquisition that could see the firm’s capital raised through equity issue in September 2023 fully deployed, and sales reaching around £25m.
At that point, the business aims to reach an EBITDA run rate goal of 15%-20% of sales after central costs.
Software Circle has said intends to issue more equity later in 2024 to help it restructure its balance sheet.
