Software Solutions Provider with Recurring Revenue

Description:
The Company is a software solutions provider focused on manufacturing and distribution companies. The Company implements information systems, develops eCommerce solutions, and is apart of the Infor Partner Network (IPN) Program, specifically for its enterprise resource planning (ERP) software, Infor XA (formerly MAPICS). The Company additionally offers consulting services, such as business and technology expertise, for ERP and distribution systems globally. These services help to optimize operations for manufacturing and distribution companies by focusing on Infor systems, integration, training, and custom add-on development.

Key Aspects:
• The Company maintained a strong average adjusted EBITDA margin of 45.1% from 2022 to 2024.
• From 2022 to 2024, an average of 90.2% of the Company’s revenue was derived from recurring contracts, with recurring revenue increasing to 99.3% in the trailing twelve months (TTM) ending August 31, 2025.
• Over the decades, the Company successfully navigated multiple platform transitions, operating as a long-standing Infor Solution Partner for Infor XA, that offers proprietary add-on software, implementation support, demonstrations, and ongoing client assistance.
• Management notes that the Company's software solutions are currently deployed by approximately 10% of Infor XA customers, showcasing an established presence that reflects both product value and deep market alignment within the ERP vertical.
• The Company has been in operation for more than 40 years.

Opportunities:
• Leverage expertise in Infor XA to other product lines, such as Infor Syteline, Infor LN, or other Infor ERP products, to capitalize on Infor’s broader ERP portfolio of over 70,000 customers worldwide.
• Target ERP systems such as SAP, Oracle NetSuite, Microsoft Dynamics, and others to further diversify the Company’s client base, product offerings, and sources of revenue.
• Capitalize on the Company's long-standing partnership with Infor and proven track record in ERP integration and eCommerce solutions.
• Begin working with complementary software vendors, consulting firms, or information technology (IT) service providers to broaden solution offerings and accelerate client procurement.

Current Markets:
• The Company serves clients in various manufacturing and distribution markets around the world, including luxury appliance manufacturing, automotive parts, security systems, industrial tools, recreational vehicles, and heating, ventilation, & air conditioning (HVAC) components.

Headquartered:
• Northeast, US

Real Estate:
• The Company operates from a 5,000 sq. ft. facility that is leased from an unrelated third party. Management notes that the lease is assumable prior to its expiration in Q2 2026.

Shareholder Objectives:
• The Company is owned by two shareholders with a 75%/25% split who are seeking retirement. The majority shareholder is not active in the Company's day-to-day operations. The minority shareholder is willing to remain with the Company post-sale in a consulting role to facilitate a smooth transition to new ownership.