Dexterity Partners advise on the sale of Saas company, Formic Limited

Formic is a cutting edge SaaS technology company who has developed over 30 years aprocess to manage “big data to create quality improvement tools to bring tangible process improvements to organisations and positioned to exploit the benefits of AI. This has been recognised  by their impressive list of clients which includes The NHS, Royal Navy and  Royal Air Force.

Ben Morley director and shareholder commented  “this was a challenging assignment with several strategic options available and how best to exploit the growing importance of big data management. This was a pivotal moment as significant investment had been made in recent years which was only currently been recognised via revenue growth. It was important to identify a buyer who could recognise and attribute value to these opportunities. To achieve value required a well thought out and practical deal structure which Dexterity Partners were able to design to result in value for both buyer and seller”.

Simon Brayshaw co-founder of Dexterity Partners commented “this was a complex transaction due to the value been based on future vision. It required the detailed assessment of several interested parties proposal during a period of Formic’s transformation to exploit the undoubted and unique data management software it had developed to become a SaaS  business. The Formic service proposition was recognised by the Ministry of Defence; the NHS and educational organisations was a key factor in attracting interested parties”.

This SaaS business model provided a platform for future recurring revenue to be managed effectively and de-risk future revenue for any interested parties. Dexterity Partners were able to work Intandem with the Formic management team to identify value via our Fit for the Future analysis of the SaaS model. This resulted in several interested parties and allowed a competitive bidding process which optimised the value to shareholders and allowed a deal structure that resulted in a win- win solution for both parties.

The Formic Limited engagement using Dexterity Partners unique end to end company sale process enable us to utilise our experience in the SaaS sector to do the heavy lifting and act as one point of contact so avoiding the traditional and cumbersome multi-adviser approach where no one owns the overall process.