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Ameri Holdings Closes Acquisition of Systems Integrator Bellsoft.


23 November 2015 - US-based technology-management solutions company Ameri Holdings, Inc. (OTC: AMRH) has closed the acquisition of Bellsoft, Inc. a Lawrenceville, Georgia-based global systems integrator specialising in providing Enterprise Resource Planning, CRM, business intelligence and other web-based solutions, the company said.

Ameri paid around USD 5m in cash and AMRH shares, plus the potential for a USD 1m earn-out based on revenue and EBITDA performance in 2016 and 2017

The acquisition will significantly expand Ameri100's service lines and geographic presence in the southeast US market, it said.

Bellsoft has historically generated adjusted EBITDA margins in the 5-10% range, but Ameri100 plans to leverage its offshore expertise and seamlessly integrate its hybrid US-based and India-based business model into Bellsoft's operations in order to reduce costs and increase margins over time.

Ameri100 believes that all synergies should be fully realized by the end of fiscal 2016.

The company has built a database of potential acquisition targets and is exploring multiple accretive acquisitions that will create value for Ameri100's shareholders.

These targets typically have strong financial health and operating performance, but with operations and employees primarily based in the US expected profit margins for these firms are in the 5-10% range.

As Ameri100 makes acquisitions, its initial consolidated adjusted EBITDA margin could be lower than Ameri100's historical level of 15%, but margins are likely to be back up to Ameri100's historical level over time as operations of the acquired companies get fully integrated.

The company continues to have a long-term business plan of reaching USD100 m in annual revenues through a combination of organic growth and acquisitions.

Ameri Holdings, Inc. is a technology management solutions firm that provides digital transformation and enterprise solutions to its clients globally. Headquartered in Princeton, New Jersey, with offices in Pune and Bangalore, India, the company is a leader in consulting and technology solutions.

Country: USA

Sector: IT/Online Services

Target: Bellsoft, Inc

Buyer: Ameri Holdings, Inc


Deal size in USD: 5m

Type: Corporate Acquisition

Financing: Cash and Stock

Status: Closed

Buyer advisor: , ,


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Publication:M & A Navigator
Date:Nov 23, 2015
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