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Summary
- Calgary-based tech firm Absorb Software said on Tuesday, April 20, that it is being purchased by American private equity company Welsh, Carson, Anderson and Stowe.
- Absorb, however, did not disclose the deal’s financial terms..
- The company is currently pegged at a valuation north of US$ 500 million.
Pinned with a valuation north of US$ 500 million, Calgary-based tech firm Absorb Software said on Tuesday, April 20, that it is being purchased by American private equity company Welsh, Carson, Anderson and Stowe.
Absorb, however, did not disclose the deal’s financial terms.
Let’s dive in to learn a bit about this Canadian software company.
A Little Backgrounder on Absorb Software
Founded in 2002, Absorb LMS offers cloud-based Learning Management System (LMS) software that help enterprises train employees and their supply chain online.
The tech company claims to have a presence in 34 countries, some 23.5 million users and more than 1,400 clients, including US-based brewing enterprise Anheuser-Busch and tech giant Uber Technologies Inc (NYSE:UBER).
Absorb raked in a substantial investment back in September 2017 when it raised a total of $59 million in a round of private equity funding led by growth equity entity Silversmith Capital Partners, as per Crunchbase.
Founder and current CEO Mike Owens has reportedly pointed that the 2017 funding helped the company “grow more rapidly” and brought it to where it is now.
Reports also note that following the acquisition, Mr Owens and the rest of Absorb’s management team will continue to a significant shareholder in the company.
Absorb has also made some acquisitions itself, with its most recent one being tech firm ePath Learning in December 2019.
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Currently holding about 300 employees spread across its offices around the world, the company expects the upcoming acquisition to trigger a need of another 100 to 150 employees over the next one year.
Absorb Software’s Financials
Back in January this year, Absorb announced that it saw a “record company growth” in 2020. The Calgary-based tech firm posted a “milestone” annual recurring revenue of $50 million in the fiscal year, while its global enterprise customer base expanded by over 167 per cent year-over-year (YoY).
Being a tech company, Absorb was one of those few enterprises that recorded a surge in its demand amid the pandemic last year. The company acknowledged that as eLearning services became “a necessity” for businesses during lockdown, Absorb saw “significant increases” in new sales as wells as customers.
Absorb software, which is recently said to have leased a 80,000 square feet space in a Telus Sky tower, will continue to have Mr Owens as its CEO following the acquisition.
Mr Owens’ ultimate goal for the company, which had once started in his kid’s bedroom, is to take it public, as per reports.
