Asure Software announced two more purchases on Monday and said it has secured additional capital to continue its acquisition strategy.
Austin-based Asure said it has acquired Wells Fargo Business Payroll Services’ Evolution HCM customer portfolio, which is a division of Wells Fargo & Company.
Customers using Wells Fargo payroll services will transfer to Asure by July 2, the company said.
Asure said it also acquired Austin HR, a human resources services firm for outsourced payroll, employee benefits and other services.
Financial terms of the deals were not disclosed.
“These two new transactions provide us with substantial clients, service offerings and financial synergies. They are in line with our overall strategy to expand Asure’s footprint nationwide, while providing opportunities to enhance our service offerings and penetrate emerging growth markets,” said Pat Goepel, Asure Software CEO.
The acquisitions are expected to generate about $6 million of revenue, in the aggregate, in 2018, the company said.
Asure Software’s products are used to help companies manage mobile workforces spread around the world. The company has grown in recent years by buying smaller companies.
Customers use Asure’s tools to track work hours as well as manage hoteling, which involves providing office space for mobile workers on an as-needed basis rather than a traditional reserved desk. The company has more than 80,000 clients worldwide.
In addition to the acquisitions, Asure said it has amended its credit facility to increase the term loans and amount of available financing to $175 million.
Terms loans under the facility are $105 million, which includes about $36.75 million of new debt. The facility also includes a $5 million revolver.
An additional $65 million will be available for future growth and acquisitions, Asure said.
“The new credit facility increases our financial footing as we continue to make strategic acquisitions,” Goepel said.
In light of the purchases announced Monday, Asure updated its financial guidance for 2018.
The company said it expects revenue of between $85 million to $88 million and earnings, excluding one-time expenses, of between $19 million and $22 million.
That’s up from previous guidance of revenue ranging from $79 million to $82 million and earnings, after one-time items, of $18 million to $20 million.
Shares were trading up 71 cents, or 5.8 percent in mid-morning trading on Monday.