Novatti Group Limited (ASX:NOV), a leading digital banking and payments company, advises that its acquisition of business process integration platform, Emersion, in April this year, has been completed smoothly and is beating expectations.
Emersion integrates diverse business applications, such as subscription billing, payments and provisioning, into existing business platforms, such as Customer Relationship Management software. By creating a one-stop-shop application, Emersion drives efficiency in business process, saving customer time and energy. Importantly, during COVID-19, its platform has also enabled teams to work effectively remotely, enabling business functions to continue uninterrupted.
In CY2019, Emersion produced revenue of more than $1.7 million and was cash flow positive with EBITDA of $300,000. Following Novatti’s acquisition in April, and despite the challenges of COVID-19, Emersion has continued to perform strongly, with combined results for April & May including:
▪ Invoicing more than $300,000 (with approximately 80 per cent recurring revenue); and
▪ Signing six new customers with contracted service values of more than $250,000 across the next three years, providing stable cash flow going forward.
Emersion now integrates with more than 70 software platforms, including majors such as Salesforce, Xero, and ConnectWise, providing a strong platform for ongoing sales. FY2021 is expected to be a strong year with further plans for international expansion and ongoing demand for customer engagement, integration, automation and payment services post-COVID-19.
Managing Director of Novatti, Peter Cook, noted: “We knew that Emersion was a strong business that would provide great synergies for Novatti’s digital-focused strategy. The strength of its platform has been on display during COVID-19 and will provide a sound base for continued growth, as we expect more people to work from home and to use the communication and entertainment services of Emersion’s partners going forward.”
CEO of Emersion, Paul Dundas, noted: “Emersion helps companies to engage with their customers, integrate their systems, automate processes, and collect payment. In particular, our real time billing platform makes it easy for our customers to manage usage-based services, improving customer cash flow. With demand for voice, data, and energy services expected to increase going forward, we expect our recurring revenue to remain strong and grow.”
This successful acquisition continues Novatti’s recent growth-focused achievements including:
▪ Strongest ever total quarterly revenue in March 2020 quarter, reaching $3 million for the first time.
▪ Launching new Visa card issuing business after being awarded a Principal Issuer Licence by Visa Worldwide Pty Limited.
▪ Gaining access to new revenue and the rental payments market through its partnership with Rent.com.au.
