Banyan Software, a highly acquisitive investment company that focuses on small software developers, has acquired Australian MIS producer PrintIQ.
The deal is a first step into Australia for a company that has been growing rapidly. It has made at least five acquisitions already this year across of number of industries. What they share is an entrepreneurial approach and leadership by a company founder that wants both to monetise their investment in the business and continue to lead it.
Banyan takes a longer term view than most equity investors who seek a return on investment within a short period. The existing team remains in place to continue to run the business, accessing additional funds that might be needed to remove limitations on growth.
In this case PrintIQ founder and CEO Anthony Lew will continue to lead the business. “Over the last 20 years, and with the help of many amazing people, we have established our business as a market leader that drives innovation through the print industry. I am delighted to have found a partner that can help us to write the next chapter in our story. Banyan shares many of the values that we hold so high and has a proven reputation for growing businesses.”
This has been more attractive than selling for the highest return. That would have involved relinquishing control to a VC company or to a trade buyer. Other entrepreneurs that have sold to Banyan admit that they might have achieved a higher price through a different strategy, but the business would have paid a higher price in the long term.
Banyan speaks of being able to share experience and ideas across the companies that it takes on. These are typically employing 10-50 or so staff with sales of more than $2 million. While some of the sellers bow out immediately, others fade out over time, and others will remain in office. Lew says: “ I already see many of the benefits of partnering with a long term investment focused software company. My goal is to continue building the product, extending our reach into new markets, and improving the way we listen, partner with, and support our existing customers.”
The business was founded in New Zealand, quickly expanding into Australia and from there making the hop into North America before coming to the UK and Europe in the last couple of years. There has been significant growth in the last 12 months and the aim is to continue that growth rate.
This will require investment in the infrastructure to sell, train and support a growing number customers. Paul Bromley who joined the business to head UK sales, took on Europe and is now global sales director. The business is recruiting in sales and support roles.
Lew is looking forward to a positive and fruitful relationship: “We are excited to have a partner who will help us deliver on that promise by investing in R&D, growing into new markets, and delivering the best solutions for the print industry.”
