Fox Williams has advised Tikit Group Plc (“Tikit”) on two strategic acquisitions that will together add significant strength to its offering as the leading provider of consultancy services and software solutions to major UK and European law firms and accountancy practices. Both deals closed on 29th October, 2010.
First, Tikit acquired the Canadian software company 3371611 CANADA INC. (trading as PENSERA KNOWLEDGE TECHNOLOGIES) (“PensEra”) for an initial consideration of C$0.73 million, with an additional capped deferred consideration payable over the next three years. PensEra specialises in developing practical technology solutions for the legal profession. PensEra has developed a time recording software application, currently marketed under the name TimeKM, which enables lawyers to recover more billable time. It also enables data capture from mobile devices such as the Blackberry. Since its launch, the software has gained over 20,000 new user subscriptions.
Second, Tikit has also acquired the Intellectual Property Rights (“IPR”) and customer contracts for Carpe Diem from Sage Software, Inc. for a consideration of US$1.35 million. Carpe Diem is the leading ‘time and expense management’ software. It is used by over 200 law firms (including many of the world’s largest).
Tikit is a longstanding client of corporate partner Paul Taylor. Paul has advised Tikit on its corporate M&A transactions and led the Fox Williams’ teams for both transactions (which also included Eniga de Montfort and Nick McCarthy). Paul commented, “We very much value our long standing relationship with Tikit. It was also great to close these deals after Tikit had won the contract to look after our own IT function. Closing both deals on the same day posed certain challenges. However it is encouraging to see a client taking a strategic view in continuing to identify and acquire targets, despite the tough economic times of late”.
David Lumsden, Tikit’s chief executive commented, “These are very important steps for clients of Carpe Diem and TimeKM, and of course for Tikit. Firstly, for Carpe Diem clients it provides a clear direction and commitment to a product that is a core application. Secondly, TimeKM clients will be provided with comfort that a much larger organisation will be behind the product and, thirdly for Tikit, it provides further software IPR and support revenues which will not only increase turnover in the future but, more importantly, will improve margins and quality of earnings”.
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