- ReadyTech (RDY) has acquired enterprise student management software business, Avaxa, for $2.2 million
- The company will take advantage of Avaxa’s client base to help expand its presence in the Australian enterprise education market
- Ultimately, it will position ReadyTech as a key technology partner for enterprise education institutions
- Company shares ended the day 5.31 per cent up to trade at $3.57 at market close
ReadyTech (RDY) has acquired specialist enterprise student management software business, Avaxa.
The software-as-a-solution company will pay a total price of $2.2 million with $0.7 million to be paid upfront and the remaining $1.5 million will be paid within the next 12 months.
According to ReadyTech, this deal aligns with its strategy of growing higher value enterprise clients in the education market. Avaxa will bring more TAFE clients to ReadyTech’s existing presence in the Australian enterprise education market.
ReadyTech CEO Marc Washbourne was pleased with the strategic acquisition.
“Avaxa has built deep domain and specialist expertise and exhibits strong TAFE and enterprise capability, as well as client engagement, through its existing relationship with six of Australia’s leading TAFE institutions that are supported by Avaxa’s Strata software,” he said.
“The acquisition is highly complementary to our education business and will allow us to leverage Avaxa’s relevant customer base and reputation in the TAFE sector to position ReadyTech as a key technology partner for enterprise education institutions.”
The buy is also expected to generate incremental recurring revenue of around $670,000 being a part-year benefit from October 2021, with an earnings before interest, tax, depreciation and amortisation margin of 15 per cent.
Company shares ended the day 5.31 per cent to trade at $3.57 at market close.