Navis backs Australasia software aggregation platform

The company claims to be the only one of its kind operating in these geographies. It recently acquired four software providers specialising in mining, creative services, construction, and document management. The targets – Scope Systems, Streamtime, Energy Inspection, and MacroView – have a combined EBITDA of AUD 11m.

Australia and New Zealand are fertile environments for private equity players seeking exposure to software-as-a-service (SaaS). Many companies achieve scale relatively quickly, by leveraging English language and technical capabilities to address global customer bases. An increasing number of global software investors are active in the market.

Software Combined's business model is not unlike that pursued by brand agglomeration platforms that have become ever more visible in Asia. It is based on a systemised and repeatable approach to M&A and the ability to bring capabilities and efficiencies that smaller software providers would not be able to access on their own.

The three founders offer a combination of M&A, strategic, and technical expertise. Evert Den Hollander previously led a global team at Macquarie Group that acquired asset finance businesses; Niek Hoogenhout worked for Boston Consulting Group and served as CEO of listed software player Rubik Financial; and Stefan Jansen helped build Amazon Web Services in Australia and New Zealand.

Software Combined examines 150 opportunities every year, positioning itself as a liquidity solution for the founders of companies for which there might be no natural acquiror. The platform focuses on companies with stable and recurring earnings, consistent and attractive margins, and high free cash flow generation. Available free cash flow can be redeployed into new acquisitions.

"We see a significant opportunity for a high-quality management team to grow and acquire vertical market software businesses in the Australian and New Zealand market," said Phil Latham, a senior partner at Navis, in a statement. The private equity firm will share its own experience of buy-and-build models to help Software Combined develop its M&A capabilities.

Navis is currently deploying its eighth Asia fund, which closed on USD 900m last year. The size of its investment in Software Combined was not disclosed.

Other private equity firms pursuing software buy-and-build strategies in Australia and New Zealand include BGH Capital. In 2019, it created a dedicated cybersecurity platform – known as CyberCX – and rolled up 12 companies. The goal was to bring scale, capital and cross-selling opportunities to a fragmented industry.

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• Topics
• Australasia
• Technology
• Expansion
• Navis Management
• Australia
• New Zealand
• SaaS
• M&A