Accesso Technology Group Regulatory News (ACSO)

24 April 2023

accesso Technology Group plc

("accesso" or the "Group")

Acquisition of Paradocs

New addition supports commitment to capitalize on significant growth opportunity in ski sector

Acquisition expands global customer base, adds new cutting-edge technology and extends the Group's leading ski market position

The Board of accesso Technology Group plc (AIM: ACSO), the premier technology solutions provider for attractions and venues worldwide, is pleased to announce the acquisition of Paradocs Mountain Software ("Paradocs"): a leading Canadian-based provider of cutting-edge software solutions specifically tailored to the unique needs of ski industry (the "Acquisition"). The Acquisition is pursuant to the terms of an equity purchase agreement entered into on 21 April 2023 (the "Acquisition Agreement").

Paradocs was established in 2001 to help ski resort operators optimize the mountain experience for their visitors. The hosted, all-in-one mountain management solution, MtnOSSM - now branded accesso ParadoxSM - is considered one of the most comprehensive and contemporary ski-specific operating systems on the market, currently leveraged by 48 Canadian and 2 U.S. resorts to optimize operations and enhance the overall visitor experience. The flexible hosted solution empowers ski areas to take full control of their operations - across ticketing and passes, snow school, retail, equipment rental, food & beverage, administration, and online sales - in one, unified platform.

Acquisition Highlights

The Directors believe that the Acquisition will be earnings accretive in the current FY 2023 financial year and:

· Provide accesso with a proven, hosted solution for the ski sector - a key strategic growth target for the Group;

· Further solidify our position as the key technology solutions provider to the ski industry, with the addition of 50 ski resorts - bringing the Group's total ski customer base to 153 resorts across North America and offering a clear migration path for existing accesso SiriuswareSM ski resort customers looking to transition to a fully hosted solution;

· Deliver measurable growth in eCommerce revenue as the Group improves and expands upon Paradocs' existing online booking module;

· Further enrich our industry expertise with the addition of 38 new team members with a tremendous passion for ski and snow sports;

· Create strategic opportunity for cross-sell with other accesso solutions.

Terms of the Acquisition Agreement

accesso agreed to acquire the equity of Paradocs from the founder and management team at Paradocs for a total consideration of $10m comprised of $9m in cash and $1m in accesso shares. A total of 117,636 shares will be issued in connection with the Acquisition in four equal tranches, commencing in October 2023, with the remaining three tranches payable at six-month intervals thereafter through to April 2025 and contingent upon founder transition support during the issuance period. The cash consideration was funded through the Group's existing strong cash reserves.

Financial Information

For the fiscal year ending 31 August 2022, Paradocs reported revenues of CAD$2.34m, an increase of 35.8% over FY 2021, with a gross margin of 93.5% and net income margin of 16.6%. Recurring revenues accounted for 62.7% of total reported revenue. In the accesso group, Paradocs' results will be reported under IFRS.

Commenting on the Acquisition, Steve Brown, Chief Executive Officer of accesso said:

"Accesso is passionate about serving the ski industry, and incorporating Paradocs' specific expertise and experience into our offering is a powerful step forward in addressing the unique and evolving technology demands of the burgeoning ski market. Adding this contemporary and powerful solution to our offering supports Accesso's long-standing commitment to serving as the industry's premier ski solutions provider."

Nicolas Dubé, Founder and Chief Executive Officer of Paradocs added:

"We are thrilled to join forces with Accesso - a truly like-minded innovator that shares Paradocs' dedication to ski and snow sports with a customer-first approach. Our team at Paradocs is excited to play an expanded role in the overall advancement of our beloved industry, and we look forward to continued success with Accesso."

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon this announcement's publication, this inside information is now considered in the public domain.

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About accesso Technology Group plc 

accesso is the leading global provider of patented and award-winning technology solutions that redefine the guest experience, drive increased revenue, streamline operations, and support data-driven business decisions for leisure & entertainment operators. Currently serving over 1,000 venues in 29 countries, accesso invests heavily in research and development to provide venues with technology that empowers them to deliver unforgettable guest experiences. Staffed by a team of attractions, cultural venue and ski industry veterans, accesso partners with venues to increase their range of on- and off-site guest engagement to drive increased revenue through intuitive ticketing, point-of-sale, virtual queuing, distribution, and experience management technology.  

accesso is a public company, listed on AIM: a market operated by the London Stock Exchange. Learn more at accesso.com or follow accesso on Twitter, LinkedIn and Facebook.