Brady pays $2m for US recycling venture
Cambridge software business Brady is paying $2 million for a US venture that tracks recycling shipments.
Brady has acquired the assets and goodwill of the ScrapRunner product from Enaptive Inc, which is based in Jacksonville, Florida.
Enaptive provides dispatch systems designed specifically for the scrap metal and recycling industry markets. ScrapRunner has been operating since 2003 and its clients are based throughout North America and Europe.
Brady CEO Gavin Lavelle said the acquisition was expected to be earnings enhancing in 2015.
He said: “The US scrap market is worth $100 billion in turnover, and 50 per cent of this is already transacted using Brady software, with seven of the top 10 recycling companies using Brady.
“We believe recycling represents a significant opportunity for Brady and are confident that the combined ScrapRunner/Brady group can increase our global market share even further.
“ScrapRunner is the leading dispatch solution designed for the recycling and scrap markets and is highly complementary to our solutions, presenting opportunities to cross and up-sell on a global basis.
“ScrapRunner also provides further domain knowledge in the recycling and scrap markets and overall provides exciting new growth opportunities."
ScrapRunner's unaudited draft accounts for the year ended December 31 showed revenues of $2m, 62 per cent of which are recurring, generating a profit before tax of $694k.
ScrapRunner has over 70 clients and drivers using 1,943 handheld applications with fleet sizes ranging from one to 500 trucks.
As with previous acquisitions overlaying Brady's routes to market, salesforce and commercial infrastructure is expected to accelerate the growth of ScrapRunner.
Brady’s UK share price fell slightly as the company posted lower revenues for the six months to June 30.
Performance was in line with market expectations for the full year with nine significant new licence deals signed in first half.
Revenues were down to £14.2m from £15.6m in the first half of 2014. The company blamed foreign exchange movements and timing of licence sales.
Chairman Paul Fullagar said: “While certain segments of the markets in which we operate are experiencing challenges, the long term outlook for renewables, recycling, commodities and energy provides very exciting markets and Brady is increasing market share.”