ELMO Software Limited’s acquisition of Breathe
We have advised leading HR technology company ELMO Software Limited (ELMO), on its acquisition of UK-based HR platform, Breathe - a fast-growing, market-leading self-service HR platform for small businesses.
The acquisition provides ELMO with entry to a new market segment, the small business market (<50 employees), while at the same time expanding ELMO’s footprint in the UK. The Breathe business model is highly scalable and makes it fast, easy and cost-effective for small businesses to digitise critical HR processes.
Founded in 2002, ELMO is Australia and New Zealand’s leading cloud HR and payroll solution company. The company provides cloud-based HR, payroll and rostering / time and attendance technology to more than 1,600 organisations. ELMO operates on a Software as a Service (‘SaaS’) business model based on recurrent subscription revenues and provides customers with a unified platform to streamline HR processes. ELMO can leverage Breathe’s customer base in order to cross-sell products and services as well as launching the Breathe platform in the Australian and New Zealand markets.
Steven Raize, who led on the deal, commented: “We are delighted to have acted for ELMO on its acquisition of Breathe. The acquisition is a fantastic move for ELMO and significant to its growth strategy. Demand for HR Tech products has increased significantly in recent years – with the need for employers to find new innovative ways to engage and communicate with their workforce and this demand is likely to increase with an expected increase in employees working remotely.
“Breathe is a fast-growing, first-class business with a reputation for exceptional products, so it’s an ideal fit for ELMO who is keen to target and diversify its customer base in a new region.”
The commercial aspects of the deal were led by commerce, technology and media partner, Sarah Reynolds with support from commerce, technology and media associate, Katie Hall.
ELMO CFO, James Haslam, said: “The acquisition of Breathe is an important step in ELMO’s evolution as a provider of SaaS cloud-based HR solutions. We are now able to transform the way people are managed, either in-office or remotely no matter the size of the organisation, improving productivity, performance and overall well-being of millions of workers across Australia, New Zealand and also the United Kingdom.”
“We’d like to thank the team at Gateley Legal for their straight-talking, rigorous commercial legal advice which enabled the transaction to run smoothly and successfully.”
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