The Bigtincan Holdings Ltd (ASX: BTH) share price could be on the move on Thursday after the announcement of a new acquisition.
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What did Bigtincan announce?
This morning the sales enablement platform provider announced that it has entered into an agreement to acquire Denmark-based Agnitio for 15 million Danish kroner (A$3.3million).
The agreement includes a conditional deferred cash consideration of up to 7.5 million Danish kroner (A$1.65 million) payable based on target revenue and subscription revenue earned in the 6-month period commencing 1 October 2020.
This acquisition will be fully funded from Bigtincan's existing cash reserves, which were boosted by an institutional placement and share purchase plan in May.
What is Agnito?
Agnitio was founded in 2001 and is a pioneer in sales enablement for the life sciences sector.
Management notes that its Rainmaker solution enables pharma and medtech companies to respond to the needs of their customers in the age of COVID-19. It enables and supports health care professionals, payers, and other healthcare stakeholders.
At the last count, Agnito had in excess of 3,000 users across 45 countries and was generating sustainable annualised recurring revenue (ARR) of A$1.6 million.
Bigtincan's Co-Founder and CEO, David Keane, commented: "Life sciences organisations are seeking new ways to engage their customers remotely while remaining compliant with local and international laws."
"Agnitio has pioneered the market's most advanced virtual engagement solution specifically designed to support life sciences companies, and when added to Bigtincan's existing market leading Sales Enablement Automation platform, will help life sciences companies interact with their customers in a virtual 'Digital Sales Room' environment," he added.
Digital sales rooms are a growing trend in business to business (B2B) sales. Research firm Gartner is forecasting 50% of all enterprise B2B sales technology implementations will include digital sales rooms by 2025.
Why Agnitio?
Management notes that Agnitio meets Bigtincan's defined acquisition criteria. It provides a positive financial impact, complementary technology, excellent people, and a focussed go-to-market strategy with an active customer base.
In addition to this, it explained that Agnitio is a leader in the provision of mobile sales tools for life sciences. This means it brings new technology to Bigtincan, including its Rainmaker remote selling technology which has a proven track record of helping remote sellers engage with their customers in ways not possible before.
And given their highly complementary businesses, management believes it represents an opportunity to deliver significantly increased value to customers of both companies when combined.
Commenting on the deal, Agnitio's CEO, Lars Meincke, said: "Agnitio's core mission has been to empower sales teams, market access and medical affairs teams in today's digital world, and we believe that together with the global Bigtincan team, we can accelerate progression towards that vision."
