Austin’s Asure Software kicks off the year with acquisitions, stronger-than-expected sales guidance

Posted January 3rd, 2017

Austin-based Asure Software is starting off the year by announcing three acquisitions and providing 2017 sales guidance that far exceeds its previous forecast.

The company, whose products are used to help companies manage mobile workforces spread around the world, has grown in recent years by buying smaller companies.

Its newest purchases are:

- Personnel Management Systems, based in Seattle, which provides outsourced human resource services.

- Corporate Payroll Inc. (payroll division), based in Cleveland, which provides payroll services in Ohio.

- Payroll Specialties NW Inc., based in Eugene, Ore., which provides payroll services in Oregon.

Financial terms of the deals were not disclosed.

“Asure has had a strong finish to 2016 and exciting start to 2017,” company CEO Pat Goepel said in a written statement. He said the acquisitions “allow us to grow and make strategic decisions about our growth. 

Goepel said that when he became CEO in 2009, Asure “had a $6 million market cap and was in a turnaround situation. Now that the transition is complete, we have evolved into a growth company, with a world-class customer base, industry-leading solutions and a strong financial profile and outlook.”

The company said it is now expecting fiscal 2017 revenue of $45 million to $47 million, well ahead of the 

current FactSet consensus of $25 million. The company expects earnings after one-time expenses of $9 

million to $9.5 million.

Asure's products include tools for tracking work hours as well as managing hoteling, which involves providing office space for mobile workers on an as-needed basis rather than a traditional reserved desk.

Last April, Asure acquired Mangrove Employer Services of Tampa, Fla., for $11.3 million.

Mangrove's offerings are focused on what's known as human capital management, including human resources and payroll applications that enable companies to recruit, manage, pay and analyze their workforce.

Asure said Mangrove would launch the company into the new and fast-growing market that targets total  workforce management. The market is expanding as more companies undertake agile work initiatives,  which encourage employees to adopt more flexible ways of working.

Asure has about 150 employees worldwide, including about 100 in Austin. The company has more than  7,500 clients worldwide.

In morning trading, shares of Asure were trading up 30 cents, or 3.53 percent, at $8.81.