ASX-listed talent management software vendor ELMO has announced a double acquisition, which it will use to broaden the capability of its existing human resources software suite.
The Sydney-based company will buy are PeoplePulse and LiveSalary from Sydney-based Quinntessential Marketing Consulting for a total cash consideration of $10 million, with $8 million paid on completion and the remaining $2 million to be paid on the first-year anniversary from completion.
ELMO described the products as two specialised software-as-a-service based HR management solutions.
LiveSalary is an online database of professional salaries that allows users to compare their wages with other similar entries across state and industry and organisation size categories, and get a sense of the spectrum of conditions that apply to that role.
PeoplePulse is online survey software that offers businesses the ability to design and deploy survey questionnaires to their workforce to gauge staff happiness, collect onboarding insights, deploy training evaluations, conduct exit surveys or other specialised HR surveys.
The ELMO software suite is designed to manage the recruitment, onboarding, training and management of talent across an organisation. Bringing the acquisitions into its fold, ELMO will increase the number of modules in its often software suite from seven to nine.
The two companies have more than 300 customers across mid-market and enterprise organisations with minimal overlap of their new parent company, according to ELMO. The acquisitions are expected to add an additional $1.7 million to ELMO's 2018 prospectus guidance of $2.7 million. The two companies generated a combined $4.1 million in revenue for the 2017 financial year.
ELMO chief executive Danny Lessem said: “We are delighted to welcome [Quinntessential managing director] Paul Quinn and his team to ELMO during this exciting period of growth as we continue to execute on our strategy I have been monitoring this business and admiring the products for a long time.
“PeoplePulse and LiveSalary are well established and successful HR software tools with a large subscription customer base.”