Little-known Hoylu (a public Swedish company) has announced the acquisition of Huddlewall from its partner Scalable Display Technologies, Inc. Included in the transaction is a sales team of four team-members in Boston, U.S., as well as customer base, intellectual property and trademarks, current book of business and prospects. The total purchase price is estimated to USD $800,000. The sellers will receive a convertible note of USD $300,000 plus an earn-out based upon actual sales in 2017.
This follows Hoylu’s purchase of We-Inspire last month. We-Inspire is the company that created the collaboration software that is used in Huddlewall.
Hoylu plans to issue a convertible note of USD $300,000 to the sellers with the option to convert at latest on December 31st, 2017 at SEK 6 per Hoylu share. In addition, the sellers will receive an earn-out based upon actual Huddlewall sales in 2017. The maximum total pay-out, including the USD $300,000, is equal to one Huddlewall sales in the period April 1st to December 31st 2017. Current run rate Huddlewall sale is approximately USD $150,000 per quarter and growing, of which Hoylu software has represented around 15 percent of sales. Hoylu will include the acquired business in its numbers from the beginning of Q2 2017.
Scalable Display Technologies has been a reseller of Hoylu Software Suite with their packaged solution Huddlewall. The purpose of the acquisition is to include Huddlewall solution in Hoylu’s portfolio of Immersive Room Solutions, Collaboration- and Smart Office Solutions. In addition, part of Hoylu’s go-to-market strategy is to have a sales team on the ground in Boston, U.S. Following the transaction, Andrew Jamison, Scalable’s CEO of 10 years, will take on the role as vice president of sales U.S. at Hoylu.
“Hoylu has brought together a global team and unique technologies that are required to deliver solutions that solve the specific collaborative workflow needs of our global customers”, said Andrew Jamison, new vice president of sales US at Hoylu.
“This acquisition is a natural consolidation of a business that is already a part of our value chain. By including this award-winning flagship product in our portfolio we can easier meet the growing demand, shorten lead times and work directly with our largest customers to deliver total solutions,” said Hoylu CEO Stein Revelsby.