ASURE FAQ
New Corporate Brand
Q. Why did Forgent change its name to Asure Software?
A. We wanted to change our brand identity as we move forward as a pure-play software company. We chose the Asure Software name because it reflects the identity and characteristics of our brand. We develop and stand behind our software solutions, which are designed to increase employee productivity often through employee self-service. We are excited about our move into this rapidly growing market, and we look forward to serving our customers with easy-to-use, high value applications.
Asure Snapshot
Q. Why is Asure moving aggressively into the workforce management market?
A. We have been working for some time on a strategy to augment our already successful NetSimplicity software business. One of the key criteria of our strategy was that we wanted to move into a large market that was closely adjacent to our current space. The workforce management market fits that criteria well, and there is a large and growing demand for solutions that enable organizations to manage their human resources and other workforce management needs more efficiently, especially through Software as a Service (SaaS) solutions.
Q. What is Asure’s mission?
A. Asure enables small- to mid-size organizations and divisions of large enterprises to operate more efficiently, increase worker productivity and reduce costs through an unparalleled, comprehensive suite of on-demand, enterprise-class workforce management software and services. Asure is uniquely focused on empowering workers through simple, self-service Web-based applications.
Q. What is Asure’s product offering?
A. Asure’s market-leading suite includes products that optimize workforce time and attendance tracking, benefits enrollment and tracking, pay stubs and W2 documentation, expense management, meeting room scheduling and management, and asset tracking and management.
Q. How many customers does Asure have and what are the company’s revenues?
A. Asure has approximately 3,500 customers, and we have combined revenues of about $12 million.
Q. How many employees and locations does Asure have?
A. Asure’s head count today is approximately 185 and we have operations in four cities — Austin, which is our headquarters; and Vancouver, British Columbia; Seekonk, Mass.; and Mumbai, India.
Q. Who is on Asure’s management team?
A. Asure’s management team consists of the senior officers of the predecessor company plus the cofounders/co-CEOs of iEmployee. Asure’s management team has 115 years of collective experience managing and growing businesses — from start-ups and young companies to large divisions of publicly traded global leaders, including Hewlett Packard, Dell, IBM, BMC Software and Compaq. The management team includes: Richard Snyder, Chairman and CEO; Jay Peterson, Vice President and CFO; Nancy Harris, Vice President and General Manager of NetSimplicity; and Snehal Shah and Fenil Shah, Cofounders and Co-CEOs of iEmployee, who will serve as Vice Presidents of the iEmployee business.
iEmployee Acquisition
Q. What are the terms of and completion date for the acquisition?
A. This purchase price was $10.7M, the structure of which was a combination of cash and stock. The definitive agreement was signed Sept. 12, and we expect to close the transaction within the next 30 days.
Q. What are the financial impacts of the acquisition?
A. With the acquisition, the company immediately doubles its software revenue to about $12 million. iEmployee is profitable, and we expect the transaction to be accretive to earnings.
Q. How will the new company be structured?
A. At this point, we plan to continue operating NetSimplicity and iEmployee exactly as they have been operating with few changes. That will evolve over time as we look at ways to combine the two entities under one organizational structure.
Q. Why is Asure acquiring iEmployee versus other companies?
A. iEmployee has tremendous growth potential. It is a well-managed, strong performing company with an industry-leading SaaS product for the fast growing workforce management market. Their products are a tremendous fit with the NetSimplicity install base and vice versa, which will provide immediate opportunities for cross-sell and up-sell into our respective installed bases. In addition, iEmployee and NetSimplicity share the same web-based marketing model and inside sales model approach, which we believe will enable quicker integration and assimilation.
Customers
Q. What benefits can Asure customers expect from the combination of NetSimplicity and iEmployee into Asure?
A. Asure customers now can get a comprehensive suite of market-leading workforce management solutions from a single, trusted vendor — versus having to cobble together offerings from multiple point solution providers or deal with a company that claims to have a complete solution but really has strength in one area such as payroll processing or time and attendance. Customers also will benefit from Asure’s ability to tap a larger group of developers and support staff with more collective expertise. For customers, that means more product innovation, faster development cycles, and even more timely support for getting the most out of Asure products and services.
Q. What will change about the way customers do business with NetSimplicity and iEmployee?
A. Customers will continue doing business with iEmployee and NetSimplicity in the same way as always for the foreseeable future. There will not be any changes to how a customer interacts with and is supported by each product team. The sales people and the support organizations will not change, nor will the contact numbers for each organization.
Asure’s Business Opportunity
Q. What is the market opportunity for Asure?
A. The market opportunity is very large. Worldwide workforce management revenue was $5.5 billion in 2005, and is forecast to be $8.7 billion in 2010 (AMR Research). At the same time, the world SaaS market is projected to grow from $2.3 billion 2003 to $8.0 billion this year (Interactive Data Corp.: IDC). By 2008, more than 50 percent of new workforce management purchases by U.S. mid-market customers will be made with vendors through the on-demand, or SaaS, model (Gartner).
Q. Who does Asure compete against?
A. Asure provides a unique and comprehensive, market-leading workforce management offering for small- to mid-size organizations and divisions of large enterprises. Our products deliver enterprise-class productivity enhancements and are easy to use and affordably priced. The modules that comprise Asure’s suite of offerings compete with various point solution providers, but they cannot offer the integrated suite of capabilities that Asure has to offer. In addition, there are bigger vendors that offer expensive, multi-product offerings that tend to provide depth of functionality in one particular area, but the functionality across the spectrum of capabilities can be sparse. Both alternatives are sub-optimal, forcing customers to transact with multiple vendors and cobble together products to meet all of their needs.