This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.
Everbridge recently filed a 10K SEC document reporting 2 acquisitions which enhance their Critical Event Management suite of solutions and broaden support for IoT applications in commercial buildings.
The NASDAQ listed public company, reported revenue in 2019 was $200.9 million, an increase of 37% compared to $147.1 million in 2018, with more than 61% of revenue derived from sales of their Mass Notification software. Their customer base has grown to more than 5,000 customers based in 50 countries.
The 1st acquisition on 7th February 2020 was Connexient, a New York based startup founded in 2012 with around 50 employees providing digital wayfinding and indoor navigation solutions for the healthcare sector. Everbridge acquired Connexient for a base consideration of $20.5 million. In addition to the base purchase price, there is also a potential contingent payment of up to $6.0 million that can be earned by the sellers, based on fiscal year 2020 revenue metrics.
The 2nd acquisition on 25th February 2020 was CNL Software, a provider of Physical Security Information Management (PSIM) software, based in the UK. Founded in 2001, their PSIM platform has been deployed to secure cities, military installations, and government buildings and to help corporations protect employees, property, and assets. CNL Software was acquired for a base consideration of approximately $35.7 million.
Connexient supplies MediNav, an interactive outdoor and indoor campus wayfinding navigation solution for patients and visitors. Features include turn by turn indoor navigation, a custom directory of patient services and amenities and Parking Planner. It provides all screens digital wayfinding and location-based services which can improve HCAHPS (Hospital Consumer Assessment of Healthcare Providers and Systems) scores and reduce late or missed appointments.
This tuck-in acquisition deepens Everbridge’s healthcare solutions offering. Memoori believes that verticalized startups with deep insight into niche applications such as indoor mapping in specific building types, can play a major role in BIoT. The use of IPS technology for navigation and wayfinding around large commercial buildings, is growing, as user experience becomes paramount.
The CNL acquisition enhances Everbridge’s enterprise risk management approach and broadens their PSIM portfolio, which was previously enhanced in January 2017 when the company acquired IDV, a US based software solutions provider for powering command centers for $18.7 million plus add-ons.
The CNL transaction will also enhance Everbridge’s long-term growth strategy to expand outside the United States. It is their 5th international acquisition in the last 6 years. The others are;
- March 2014: Vocal Limited, a mass notification company based in Colchester, England.
- December 2016: Svensk Krisledning AB, a SaaS mobile crisis management company based in Norsborg, Sweden.
- April 2018: Unified Messaging Systems ASA, a critical communication and population alerting systems company based in Oslo, Norway.
- May 2018: Respond B.V., a critical communication solutions company based in the Netherlands.
With increased risk of terrorist activities and incidents both in the workplace and in
public places, businesses need effective platforms to notify personnel in their facilities as
to what is happening, where it is happening and how to respond in an emergency situation or critical event.
The Everbridge platform is comprised of a set of software applications that address a spectrum of tasks an organization has to perform to manage a critical event, including Mass Notification, Incident Management, Safety Connection, IT Alerting, Visual Command Center, Public Warning, Crisis Management, Community Engagement, Risk Intelligence and Secure Messaging.
Everbridge has evolved from being a pure player in the mass notification software market to providing a broad suite of integrated, Critical Event Management solutions delivered via a single global platform.