Accel-KKR targets Australia-listed SaaS player Damstra

The company gave no details regarding pricing, merely saying in a filing that discussions in relation to the proposal had concluded. Its stock closed up 25.8% on July 7 at AUD 0.19, which translates into a market capitalisation of AUD 39.7m. Damstra listed in October 2019 and peaked at AUD 2.18 approximately 12 months later. It is down 43% year-to-date.

Accel-KKR’s approach continues a trend of global investor interest in Australia-based enterprise services businesses, through growth and buyout deals. Take-privates are also popular across sectors, with 16 deals completed and 11 announced since the start of 2021, including infrastructure and real estate. Ten feature financial sponsors. A further seven take-privates have been abandoned.

There is one other live situation involving a SaaS company. Infomedia has entertained three separate offers in recent months, from Vista Equity Partners-owned Solera, Battery Ventures, and TA Associates, respectively. The company announced on July 7 that Solera and TA would get access to further information for confirmatory due diligence with a view to submitting binding offers.

Damstra’s Enterprise Protection Platform integrates modules that allow organisations to mitigate and reduce unforeseen and unnecessary business risks around people, workplaces, assets, and information. Functions include enabling clients to oversee site access, track and communicate with workers across different locations, and coordinate plant and equipment maintenance.

The company serves customers across the mining, construction, energy and utilities, and education industries, as well as government agencies. Solutions cover contractors in addition to permanent staff. According to Damstra, more than 70% of site accidents are related to temporary workers who are not properly inducted, oriented, or trained.

As of June 2021, there were 724 clients across approximately 20 countries and 737,000 individual users. Revenue for the 12 months ended June 2021 was AUD 27.4m, up 38% year-on-year, while average recurring revenue rose 63% to AUD 34.5m. Pro forma EBITDA was more or less flat at AUD 6.6m, while the company’s net loss widened from AUD 3.8m to AUD 8.6m.

Accel-KKR is an active investor in Australia and New Zealand-based business services companies. In the past couple of years, it has backed the likes of workforce management software provider Pegasus and procurement marketplace Unimarket. There was also a USD 1bn trade sale exit from engineering software specialist Seequent.

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• Topics
• Australasia
• Technology
• Buyouts
• Australia
• enterprise software
• Accel-KKR