Mercell acquires Ibistic International A/S and CTM Solution B.V.

HE Gambit Mercell Bors
Picture from left: Joar Welde, Partner Viking Venture, Fredrik Eeg, CFO of Mercell, Terje Wibe, CEO of Mercell and Erik Fjellvær Hagen, Managing Partner Viking Venture

Oslo, 11 May 2021 Mercell Holding AS (MRCL-ME) has signed agreements to acquire 100% of Ibistic International A/S (Ibistic) in Denmark and Mercell’s distributor CTM Solution B.V. (CTMS) in the Netherlands.

– We continue to scale further through our programmatic M&A strategy to consolidate existing markets, add product portfolios and customer bases, and expand our European presence, says CEO Terje Wibe in Mercell.

Ibistic is a Nordic market leader in cloud-based invoicing and expense and travel management, with user-friendly systems for automation and integration with ERP systems. Ibistic has 20 employees and had revenue of DKK 17 million with an EBITDA-margin of 38% in 2020. Half the revenue base is recurring, and the acquisition hence adds DKK 8.5 million to Mercell’s growing Annual Recurring Revenue (ARR) base. Ibistic customers will over time be migrated to Mercell’s existing platform. The transaction is based on an enterprise value of DKK 27 million, with an additional earn-out component capped at DKK 10 million.

Separately, the company today announces the acquisition of CTM Solutions in the Netherlands. The company has acted as Mercell’s distributor in the Dutch market and will be integrated into Mercell Negometrix. The company has 10 employees and an ARR of approximately EUR 1 million. The transaction is based on an enterprise value of EUR 1.5 million, with an additional earn-out component capped at EUR 0.5 million.

CTMS is the second largest private player in the Dutch market after Negometrix, and the business combination makes the company the clearly leading commercial provider in the Dutch pre-award market. The software and associated services of both companies will remain available for the customers, with the company expecting to realize both revenue and cost synergies from the integration.