Breathe, HR software provider for SMEs, has announced its acquisition by ELMO Software Limited (‘ELMO’). The acquisition provides ELMO with entry to a new market segment, the small business market while at the same time expanding ELMO’s footprint in the UK.
Founded in 2012, Breathe is a market leading HR software for SME’s. The self-service model is highly scalable and makes it fast, easy and cost-effective for small businesses to move their HR admin into the cloud.The transaction adds to ELMO’s revenue and customer base. Breathe’s annualised recurring revenue (‘ARR’) as of 31 August 2020 was £3.6 million (A$6.5 million), which has been growing at over 30% annually. Revenue is 100 per cent subscription-based and recurring in nature. Founder Jonathan Richards will continue on as CEO of Breathe UK.
Jonathan Richards (pictured with Paul Feist above), co-founder and CEO of Breathe comments, “When we started Breathe we had one goal in mind, to give businesses the tools they need to put their people first. This is a goal that Breathe and ELMO share and live by. I’m excited about today’s announcement, there’s a huge potential for Breathe and ELMO and we’re looking forward to joining the ELMO family. The two products perfectly complement each other – Breathe for SMEs and ELMO for mid-market organisations. My brief is to continue focusing on supporting the UK SME community. The Breathe team and the Breathe product will go from strength to strength over the coming months and years.”
ELMO CEO and Co-founder Danny Lessem said: “The acquisition of Breathe is an important step in ELMO’s evolution as a provider of cloud-based HR solutions. Strategically, Breathe is a very compelling, fast growing business. It provides ELMO with access to a new and attractive customer segment, complementary technology, and a significant UK footprint. The strategic crossovers and revenue opportunities are very meaningful, and our market opportunity has significantly expanded.
“We are now able to transform the way people are managed, either in office or remotely across all market segments, improving productivity, performance and overall wellbeing of millions of workers across Australia, New Zealand and also the United Kingdom.”
The transaction presents significant new revenue opportunities for ELMO. Breathe will be launched into the Australian and New Zealand markets, accessing a new A$660 million market opportunity, leveraging ELMO’s infrastructure and expertise. In addition, Breathe will cross-sell additional existing ELMO HR modules into its large UK customer base.
About Breathe
Breathe provides easy to use HR and Rota software, aimed to help SMEs spend less time on people admin and more time creating happier, healthier and more productive workplaces.
Born in 2012, Breathe now helps over 8,000 companies manage their people with over 250,000 employees in the system. Breathe is also sold through a successful partner network now supporting 500 HR partners. Its 2020 Culture Economy Report is now available. The report includes an extensive range of primary and secondary evidence on culture and its wider impacts to health and wellbeing, productivity, society, psychology and beyond, as well as how SMEs can develop their own business culture.
Clients include firms such as AgeUK, Huel, RocketMill, Big Issue and The Wildlife Trust. Breathe is the trading name for Centurion Management Systems Ltd who’ve been selling software since 1996.
About ELMO:
Established in 2002, ELMO is a cloud-based HR, payroll and rostering / time & attendance software provider. The company offers customers a unified platform to help organisations streamline their people, process and pay. ELMO operates on a software-as-a-service (“SaaS”) business model based on recurrent subscription revenues. For more information, please visit www.elmosoftware.com.au.
Author: Breathe
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Date Published: 13 October 2020