The global financial market volatility is showing no signs of ending, which is proving difficult for ReadyTech’s owners as they try to work out the future of the software business.
Private equity owner Pemba Capital posted the “for sale” sign on the business nearly six months ago but so far there’s been little sign of action.
Pemba Capital owns 80 per cent of the equity software group while the other 20 per cent is held by the company’s management, including co-founder Marc Washbourne.
ReadyTech is classified as a software-as-a-service provider specialising in the education and employment sectors and the company runs payroll system and occupation health and safety software as well as student management systems.
DataRoom understands that ReadyTech has $15 million in annual earnings and its profits have been rising strongly recently after signing up several new clients. It has also put in place a “land and expand” strategy to help increase its earnings
An IPO was the preferred option and Macquarie Capital was put in charge of overseeing that. So far, there are no signs that a float will happen before the end of the year.
The analyst research has yet to be published and management meetings have not been booked either.
It had been hoped that a listing would occur by the end of the year, but given the volatility in global markets is not ending, the prospect of that happening is slim.
Luminis is in charge of finding a trade buyer and while there is reportedly interest, a sale is not believed to be imminent.