LiveTiles Limited signed an agreement to acquire Hyperfish, Inc. for $6.7 million on May 25, 2018. As a part of the consideration, LiveTiles will issue 8.6 million shares to Hyperfish. Also, the consideration will include two earn-out tranches which will also be paid in shares only, wherein, the first tranche includes the issuance of 6.31 million LiveTiles shares if Hyperfish achieves Accounting Rate of Return of at least $1 million as at December 31, 2018; and the second tranche includes the issuance of 6.31 million LiveTiles shares if Hyperfish achieves – ARR of at least $1.5 million as at June 30, 2019 and Net Dollar Retention of at least 90% in the year ending June 30, 2019. All the shares issued as part of the consideration will be subject to a 12 month escrow period from the issue date. Hyperfish Founders will continue to run Hyperfish as a division of LiveTiles. The transaction represents an implied enterprise value/revenue multiple of 4.5x. Hyperfish had revenues of AUD 0.4 million. The transaction is subject to customary closing condition and is expected to be completed in early June 2018.
Hyperfish, Inc. designs and develops employee profile and directory management software. The company was incorporated in 2015 and is based in Kirkland, Washington. As of June 8, 2018, Hyperfish, Inc. operates as a subsidiary of LiveTiles Limited.