Friday 21 September 2018

Dublin-based Clavis Insight bought for €100.3m by UK firm

Garry Moroney of Clavis
Garry Moroney of Clavis
Adrian Weckler

Adrian Weckler

Dublin-based ecommerce analytics company Clavis Insight has been bought for $119m (€100.3m) by the UK firm Ascential.

The fee may rise to as much as €187m ($219m) depending on scheduled earn-outs agreed as part of the deal, according to the companies.

The acquisition marks a successful exit by chief executive and co-founder Garry Moroney, as well as early backers such as Dublin-based financiers Brian Caulfield, Jim Mountjoy and venture capital firm Delta Partners.

Clavis Insight’s technology is seen as important as volumes in ecommerce and online shopping continue to rise.

The head of Retail Excellence Ireland retail told Independent.ie that while physical stores are seeing static trade in Ireland’s booming economy, online trade is up 70pc this year.

Clavis currently employs 170 people, including 100 in Dublin, with “hub locations” in the US, UK, France and China for its global customer base.

The company says that it had revenue of €11m with a loss of €6m last year, against assets of €13m. However, it said revenue would grow to €14m this year and it expected to “break even” next year.

“Clavis benefits from a high level of recurring revenue with 95pc of total revenue being subscription-based,” said a company spokesman.

While the initial sum being paid is $119m (€100.3m), it could rise to €186m.

“Earn out consideration is payable in cash based on the annualised recurring revenue of the business at the end of each of the next three years to 2020 and is expected to total between approximately $25m and $50m,” said an Ascential spokesman.

“A portion of the earn out is subject to founders remaining in employment with the company. The total potential consideration, including initial consideration and earn out payments, is capped at $219m in the event that extremely stretching annualized recurring revenue levels are reached.”

Clavis Insight is described as a market leader in eCommerce analytics, with its proprietary technology letting consumer product companies track and optimise the performance of their products across hundreds of retailer websites and mobile commerce sites globally.

Its customers include P&G, Nestle, Unilever and L’Oreal.

It will now join Ascential’s Information Services division with a view to linking up with Ascential’s One Click Retail system.

“In 2018 we will integrate Clavis with OCR’s Amazon sales and share product, which, like Clavis, helps consumer product companies drive sales through eCommerce,” said an Ascential spokesman. “This combined product suite will constitute a globally leading eCommerce performance measurement platform, to enable both companies to provide broader capabilities to their existing customers.”

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