“Techstep executes its M&A strategy according to plan. This is the 11th acquisition since the journey started and an important one progressing Techstep’s transformation into a software-driven company. Making work mobile at scale in an easy, secure, and sustainable way represent a big value creation opportunity, and Techstep aims to be a leader within the field”, says Jens Rugseth, Techstep chairman of the Board.
Acquisition strengthens MMS offering and unlocking European expansion
The acquisition of Famoc will provide Techstep with:
- Software complementing its Managed Mobility Services (MMS) offering to enterprises in the Nordics
- An European footprint unlocking geographical expansion outside the Nordics
- An expected increase in annual recurring revenue (ARR) of ~40%
- Significant financial synergies from integration of Famoc’s software into Techstep’s MMS offering and from cross-selling opportunities
Techstep’s Managed Mobility Services (MMS) solution is delivered via an as-a-service model to reduce complexity and cost and increase the value of mobility for enterprises. The Famoc acquisition reduces third party software dependence and provides software and systems that strengthens Techstep’s capabilities within Platform Management. Combined with Techstep’s established capabilities within Asset Management and Advisory Services, Techstep can offer customers a complete and automated MMS solution that provides control, security, compliance and lifecycle management – all on one Techstep dashboard.
By complementing Techstep’s MMS offering, the transaction enables up-selling opportunities to existing Techstep customers in the Nordics, as well as increasing the gross profit potential per managed device, contributing towards Techstep gross profit ambition of NOK 1,200 per managed device by 2025. In addition, Famoc’s existing 850,000 users represent a cross-selling opportunity for Techstep’s current own IP and solutions, as well as joint European expansion and accelerated growth opportunities.
“Acquiring Famoc, its software, systems and European operations makes perfect sense. The transaction strengthens our all-in-one Managed Mobility Services solutions for enterprises in the Nordics, it unlocks a European growth opportunity and should strengthen our financial performance going forward” says Jens Haviken, Techstep CEO.
Famoc was founded in Poland in 2006 with offices in Gdansk and Warsaw. Famoc delivers software solutions for mobility management to SMEs and enterprises via channel partners, and offer products within the categories Software to manage mobile devices and secure mobility in business, Security software to defend confidential data, and Software that locks down the devices of users with overdue payments.
As of February 2021, Famoc has an ARR of NOK 26 million, a 19% recurring revenue CAGR, and an LTM EBITDA margin of 23%. Famoc will be acquired at an enterprise value of NOK 103 million (PLN 47 million), which corresponds to an EV/ARR multiple of 3.96x.