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London-listed Grafenia is acquiring Topfloor for €6.2m to enhance earnings from its software-as-a-service business.
Irish proptech company Topfloor has been acquired by the UK’s Grafenia in a €6.2m deal.
The acquisition, announced on Friday (17 February), is expected to generate further cash flow for Grafenia and enhance earnings in the first year after the deal is completed.
Topfloor is a property management software company based in Dublin. Founded in 2003, the company provides cloud-based software-as-a-service products for those involved in the property sector, including agents, owners, landlords and tenants.
One of its products, Blockman, is a service charge, ground rent, client accounting and administration tool providing advanced report and document generation for apartment block and estate managing agents.
Another, Letman, is a tenancy administration and client rent accounting tool for property management agents involved in the letting and management of residential properties.
More than 95pc of Topfloor’s revenue comes from the annual recurring fees it charges around 300 clients across Ireland and the UK.
Topfloor CEO Niall Wrafter will remain in the business along with fellow-shareholder and chief technology officer Cathal Browne. They will enter new employment contracts to continue to lead the team of eight staff located in Ireland, while founding shareholder George Murphy leaves.
“Having been a shareholder of Topfloor for many years, George was ready to exit whilst Cathal and I have ambitious plans for the business,” Wrafter said after the deal was announced.
“Grafenia can help us achieve those aims and is the ideal home for Topfloor moving forward. We are enthused and energised at the prospect of growing the business and taking it to the next level under Grafenia’s ownership.”
The London-listed SaaS company is paying an initial €3.8m for Topfloor, with a deferred consideration of €960,000 to be paid on the first anniversary of completion. Up to a further €1.4m is due upon achievement of agreed targets relating to Topfloor’s financial performance.
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