EBITDA was said to be growing 62.5 per cent annually, on a compound annual growth rate basis, while recurring revenue was worth $25 million-plus a year and there were 630 active clients.
It’s understood to be the clients that piqued private equity investor interest. While there’s plenty of active clients, the big one is Telstra, which is a nice and big player and solid company, but can be a difficult counterparty for a small or mid-sized private equity owner to have to deal with.
The IM said Ericom was “a trusted award-winning Platinum Telstra Partner of 15+ years”, which meant it had “well established referral channels within the Telstra ecosystem and has grown significantly through refining its Telstra engagement model”.
KPMG’s key investment highlights included Ericom’s end-to-end solutions, award-winning Telstra partner, diverse customer base, exceptional financial performance and favourable market growth dynamics.
The auction’s expected to play out in coming months.
Anthony Macdonald co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years’ experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at [email protected]
Sarah Thompson has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones. Email Sarah at [email protected]
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