Insight
Sage acquired Brightpearl to build a retail solution to rival NetSuite
“And the reason why Sage bought us at the end of the day is they compete with NetSuite. So do we. But it's no secret that if you go to their website, you don't see a sector specific solution for retail, but obviously we are a sector specific solution for retail…”
Disclosure
Brightpearl executed an internal down round to top up employee option pool
“We did do a down round, like in terms of a revalue of bride pro we had to, and the primary driver of that was to ensure that we could top up the option pool for the employees and make sure that they all came along for the ride and every share was equal.”
Assertion Supported
Sage acquired Brightpearl for a $360M enterprise value plus retention packages
“Three 60 enterprise value, and then some separate retention stuff on top, but enterprise value in terms of equity was three 60, which everyone was very happy with.”
Insight
Partnering beats building custom accounting tools in a commoditized software market
“I wanted to raise money to build a better accounting solution within Brideboro specifically designed for retail. But when I looked at it, the cost of doing that and having a clear idea of what the strategy was to win in a highly commoditized market didn't real…”
Assertion Partly supported
Brightpearl's revenue grew from $12.8M in 2019 to $30M in 2021
“Yeah, we ended 2019 at 12.8. Then the next year, 2020 went to eighteen million. So that was about 39, 38% growth. And then in 21, just gone, we got to thirty million, which was 63% growth year over year.”
Assertion Not publicly verifiable
Brightpearl's $30M revenue in 2021 included $4.5M from an acquisition
“So organically Brightboro got to 25 and a half and then the four and a half came from the acquisition that we made. So the group got to thirty million at the end, which was key.”
Assertion Not checkable as stated
Inventory Planner grew from $2.4M to $4.5M in revenue during acquisition
“So that business is growing at 70%. When we sent in the LOI, the letter of intent we have, we obviously had them growing at 70%. They were on revenue at 2.4. They ended the year at four, 4.5.”
Disclosure
Brightpearl paid a 3.1x revenue multiple to acquire Inventory Planner
“The multiple that we paid cause they were pre-scale. Was around about 3.1 times 3.1 revenue because they were subscale and they were technology only team”
Disclosure
Inventory Planner buyout was 70% cash upfront, 30% for technical remediation
“No, it was 7030 because the remediation list was very small. It was a known, you know, it's just pretty tight, well-written code base. So yeah, 7030.”
Assertion Supported
Brightpearl raised a $30M round led by strategic investor Sage
“And then on top of that, we brought in a strategic investor, which was called Sage. And altogether we raised thirty million about 14 months ago with those guys.”
Assertion Supported
Brightpearl raised its $30M strategic round at a $130M valuation
“Yeah. A little bit lower. It's around about one 30.”
Assertion Supported
Brightpearl's team owned just over 16% of the company after Series C
“It was just over 16%, just over like clean.”
Disclosure
Brightpearl planned to raise a $100M-$120M round before the Sage buyout
“So we had always had a plan in early 20, 22, we'd go to market and raise a hundred and twenty million dollars. That was very clear to the board. So it was a two stage process. Thirdly in, get a product out to market with Sage and then do the one 20, early 20, …”
