Media Releases › AD1 Holdings

Key highlights

• AD1 to acquire leading SaaS talent acquisition software provider, Scout Talent Group for upfront consideration of $65 million ($18.5 million cash and $46.5 million in scrip) with equity consideration issued at 4.23 cents per share.
• Scout acquisition advances AD1 to be a global provider of SaaS HR technology products and services with a significant North American presence
• In FY23, Scout expects to invoice $23m of total revenue and be EBITDA positive. $20m of this invoiced revenue will be ARR. The monthly recurring revenue (MRR) in September 2022 will be $1.7m which would result in a September run rate of $20.4m ARR for FY23. Post completion of the Scout Talent acquisition, AD1 is forecasting total revenue in excess of $30 million for FY23 (1)
• Complementary fit to AD1’s business adding significant scale and growth opportunities, having achieved 45% year-on-year ARR growth and 300 new customers during FY22
• Unlocks over 800 active SaaS customers, growing AD1’s base to over 900 active customers
• AD1 to generate FY23 pro-forma revenue in excess of $30m with approximately 30% derived from North America
• AD1 expected to be EBITDA and cash flow positive in FY23 on a pro-forma basis before synergies2
• Acquisition is consistent with AD1’s strategy of delivering strong shareholder returns by acquiring and growing SaaS businesses within fast growing markets