Climb Advisors Weekly M&A Deals Newsletter

The Week in Review

Author

Nick @ Climb
October 08, 2023

Welcome to Climb Advisor’s weekly deal newsletter highlighting transactions announced last week across the B2B tech landscape.

Climb Advisors is an M&A advisory firm focused on B2B software and services companies in the range of $5m to $50m+ enterprise value. We guide CEOs and business owners through the process of selling their business & assist investors in sourcing & closing great deals. We love to talk markets and share beneficial information - please reach out any time.

Movate acquires outsourced sales and customer experience services provider TSD Global

Deal Details: A portfolio company of Capital Square Partners, Movate provides digital technology and customer experience (CX) services. By integrating TSD’s large clients and outbound services capabilities, Movate will be able to significantly broaden its presence in the CX industry. Read more here.

Climb Comment: Movate offers both technology platforms and associated services while TSD is a pure-play BPO/IT service provider. Play here is likely two-fold -- acquire the revenue and talent of TSD while adding a direct sales channel into TSD’s existing customer base.

Factorial completes its first deal, snapping up YC-backed Fuell

Deal Details: Factorial, a Miami based provider of human resources software solutions, is expanding its presence in the global expense management market. They've announced the acquisition of Fuell, who focus on budget management and simplifying back-office tasks such as tax refunds and expense categorization. Read more here.

Climb Comment: Factorial offers a comprehensive suite covering employee onboarding, time management, payroll, and more. Fuell focuses specifically on expense management; corporate credit cards and budget solutions with baked-in analytics and business intelligence. Powerful solution to offer alongside Factorial’s existing suite and creates new revenue channels in payments.

Mod Op adds data analytics platform dPrism to its portfolio

Deal Details: Mod Op, a full service digital marketing agency continues to be extremely active on the M&A front. Their latest acquisition is 16-person dPism team based in New York. It focuses on helping clients analyze data to enable greater revenue growth, more effective operations, and better customer experiences. Read more here.

Climb Comment: Mod Op is a digital creative agency offering UX solutions, video creation, PR, digital marketing as well as analytics and data management; dPrism creates digital transformation in large orgs via data analytics, strategic advisory, & technology. Great opportunity for Mod Op to add strong capability on the technical side & create value for existing & new clients & internally.

Nvni Group Ltd. merges with Mercato Partners Acquisition Corporation and lists on Nasdaq

Deal Details: Nvni Group Limited (now “Nuivini”), a leading serial acquirer of B2B SaaS companies in Brazil, has announced the completion of its merger with special purpose acquisition company Mercato. This move, along with the subsequent listing on the Nasdaq, aims to fuel Nvini’s M&A efforts as they look to accelerate growth through acquisition. Read more here.

Climb Comment:

NVNI - a Brazil focused saas acquirer holds a portfolio of seven B2B SaaS companies. Companies include offerings in customer experience, sales & marketing, govtech & specialty ERP.

Constellation, specifically through the Vela Software business unit, has been active in Brazil but otherwise we don’t see many North American tech buyers enter the region. Interesting to see a regional player emerge at scale, comparable to the Nordics where there are a number of local analogues to Constellation.

Nuvini suggested in the listing that they’d be looking at acquisitions throughout Latin America and on their website they state that they “buy and grow SaaS businesses in the Americas”, suggesting that they intend to be opportunistic and expand geographically.

They expect to have ~$60m in cash to deploy on new acquisitions post listing. Will be interesting to follow how & where that is deployed - we’ll keep an eye on it and check back in a quarter or two.

Thanks for following along & hope you found something useful or interesting. We’ll be back next week with more deals.

All the best,

Nick

Nick Cellura

Principal, Climb Advisors