Austin’s Asure Software sets secondary stock offering on heels of two acquisitions 

Posted May 26th, 2017

On a Friday morning conference call with analysts and media members, Asure Software Inc. chief executive officer Pat Goepel didn’t try to hide his enthusiasm.

“Boy, I’m thrilled to be back talking about some of the exciting things happening at Asure,” Goepel said.  “Simply put, we have arrived.”

The source of the CEO’s excitement was a flurry of announcements from the Austin-based company, which creates human-resources management software. 

They included two first-quarter acquisitions the company says will boost its margins — iSystems Holdings, LLC and iSystems Intermedia Holdco, Inc. for $55 million in cash, a promissory note and stock and Compass HRM, Inc. for $6 million in cash and a promissory note — the appointment of Silver Oak Services Partner founder Daniel Gill to its board of directors, and most significantly, a secondary stock offering.

Asure said it will issue 1.9 million shares of common stock at $13.50 per share. The company said it expects proceeds from the public offering of $26.65 million before deducting underwriters commissions and other expenses. The company also will grant an option to the offering's underwriters to purchase an additional 285,000 shares. 

Asure Software said it will use net proceeds from the offering for general corporate purposes. 

"We may also use a portion of the net proceeds to acquire or invest in complementary businesses, assets or technologies, although Asure has not entered into any definitive agreement with respect to any specific acquisition at this time," the company said in a news release.

ContributedAsure Software, Inc. CEO Pat Goepel

The company is listed on the Nasdaq exchange as ASUR and as of this writing, its stock was down about 8 cents, or less than 1 percent, Friday to $14.55. The company’s stock has more than doubled since last year; its first-quarter high for 2016 was $5.67.

The company also said it has amended its $75 million loan agreement with Wells Fargo Bank and is now also a client of Goldman Sachs with a $40 million incremental loan for more acquisitions.

Goepel said the company’s strategy of acquiring service bureaus that are already using its software is paying off and will continue.

In January, it closed acquisitions of Personnel Management Systems Inc., Corporate Payroll Inc. and Payroll Specialties NW Inc.

“(Bureaus) look at us as their exit strategy. We’re familiar with the software, there’s no conversion for customers. We have a growth strategy not only for the next year, but for the next three to five years,” Goepel said in the conference call.

The company has about 240 employees. In an SEC filing Friday, Asure said it will be expanding its direct sales team.

Said Goepel, “We are as excited today as the day we started and feel like we’ve got a lot of momentum.“

Want an idea of how the company sees itself? Here’s a sizzle reel from YouTube: