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April 1, 2014
MW Transaction Analysis  

Bottomline Technologies to Acquire Andera

Financial Overview
  • Transaction Size:                                                   $48.1 million
  • Enterprise Value:                                                   $48.1 million
  • EV/LTM Revenue Estimate:                                                   6x+*

Transaction Facts

  • Bottomline Technologies (de), Inc. (NasdaqGS:EPAY) announced yesterday that it has agreed to acquire Andera, Inc. for $48.1 million in cash and stock.
  • Bottomline, a provider of cloud-based payment and digital banking solutions is looking to capitalize on Andera's BFSI-focused customer acquisition solutions.
  • The transaction is expected to be accretive to fiscal year 2015 core net income, contributing $2 million in Q4 2014 and $10 million in fiscal year 2015.


Acquiring Capabilities to Capture Growing Demand  

  • Using New Technologies to Engage with Customers: As customers increasingly adopt online and mobile banking solutions, financial institutions are looking to accelerate revenue growth with web-based tools such as Andera's SaaS-based online/mobile account opening and loan application
    solutions. 
  • Strengthening Relationships by Adding Capabilities: This is Bottomline's 10th major acquisition in the last four years, all of which have provided additional capabilities to build out Bottomline's portfolio by adding payment collection solutions, financial management software, document automation and similar solutions.
  • A New Opportunity for Cross-Selling: Andera has more than 500 bank and credit clients, presenting Bottomline with new relationships for cross-selling its existing services.
  • Strong Payout for Active Investors: Since it was founded in 2000, Andera has attracted private equity and venture capital investments. Investor Edison Venture Fund contributed $9 million in 2010 and exits with yesterday's transaction at a much higher figure.


For more information, read the press release here.

 

*With $2 million in quarterly revenue, we estimate Andera's LTM revenues to be less than 4 x $2 million or $8 million.  Therefore, the estimated LTM revenue multiple is assumed to be greater than $48 million/$8 million, or 6x+.

 

 martinwolf was not the advisor in this transaction. 


About martinwolf    

 

                
             San Francisco, CA                                                Bangalore, India

With offices in San Francisco and Bangalore, India, martinwolf is a leading middle market M&A Advisory focused on companies with services-based business models. Since 1997, our team has completed more than 115 transactions in nine countries. We are a five-year member of the Merrill Lynch PS Referral Network, and are a strategic partner of the Enterprise Advisory department of CICC, China's first joint-venture investment bank.

 

The firm currently has two deals in the payment technology space.

 

The firm is also a presenting sponsor of the Global IT M&A Forum.   

 

martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com.  

 

To learn more about martinwolf, contact Matthew Putzulu at mputzulu@martinwolf.com.

 

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