RG Corporate Finance is advising eprocurement software company Market Dojo on its acquisition by a global cloud platform and automation specialist.
Esker, which is headquartered in the US, will acquire 50.1 per cent of the shares and voting rights in Market Dojo effective Q1 2022, and the remainder of the Market Dojo shares after a period of four years.
Bristol-based Market Dojo, which employs 20 people, created its eSourcing cloud platform to address the need for structured and digitised processes in procurement departments.
The company has in excess of 160 customers, 60 per cent of which are outside its domestic market including France, the US and the Middle East and has a trailing 12-month sales revenue of 1.3m, growing 30 per cent annually.
The merger will offer Market Dojo international development opportunities for its services as well as strengthening its competitiveness in its traditional markets by integrating eSourcing as a new key area.
The acquisition will be completed in two stages across a four-year collaboration period between the two companies.
During this period, Market Dojo will operate as a standalone business unit while offering Esker and Market Dojo’s customers a P2P ecosystem, with Market Dojo leveraging Esker’s back-office, operational infrastructure and international presence.
To strengthen the involvement of Market Dojo’s management in Esker’s global operations, 20 per cent of the consideration paid will be in Esker shares, including a two-year lock-up commitment at each step.
Alun Rafique, chief executive and co-founder at Market Dojo, said: “There is incredible synergy, not just in our solutions, but in the people and culture. The acquisition provides a great opportunity for our customers and partners. 2022 will be an exciting year for anyone interested in a P2P ecosystem and Market Dojo will be able to strengthen its position as the market leading provider of on-demand eSourcing and supplier engagement solutions.”
Jean-Michel Bérard, chief executive at Esker, said: “This acquisition provides new growth opportunities in a developing market and strengthens Esker’s positioning in the global P2P arena. Additionally, Market Dojo is an excellent illustration of Esker’s strategy to invest in organic growth combined with targeted acquisitions that offer a high potential for growth.”
Carl Swansbury, partner and head of corporate finance at RGCF, said: “The shareholders of Market Dojo have built an innovative eprocurement software business and as part of Esker will be able to accelerate the growth and development of the business in the coming years. This transaction highlights the quality of the UK’s tech sector and the interest it is attracting from potential investors and strategic buyers from around the world.”