Limeade Inc (ASX:LME), an immersive employee well-being company, is poised to enhance its customer experience after acquiring employee listening software company TINYpulse.
Under the terms of the acquisition, Limeade has agreed to merge with Seattle-based SaaS (software-as-a-service) provider Tiny HR Inc doing business as TINYpulse, for US$8.8 million which will provide it with 100% of the issued capital of TINYpulse.
The power of TINYpulse listening functionality increases the ability for Limeade to actively listen and serve employees with the right well-being experiences they need at the moments they need them the most.
This acquisition comes at a time when companies worldwide are increasing their investment in understanding and tracking employee sentiment and well-being.
“Employee well-being solution”
Limeade founder and CEO Henry Albrecht said: “The COVID-19 pandemic has reinforced the original Limeade vision: Well-Being is foundational to creating healthy employee experiences, which in turn generate better business results for our customers.”
“Limeade Institute science tells us that listening, learning and acting on employee feedback is a top driver of well-being actions.
“By adding TINYpulse listening capabilities, Limeade is poised to deliver the next-generation employee wellbeing solution that fits seamlessly into people’s daily work.”
Access to mid-market customers
TINYpulse serves more than 500 businesses ranging from startups to Fortune 500 companies.
The acquisition of TINYpulse will create direct access to mid-market customers looking for an integrated well-being and employee experience solution, and over time will enhance the Limeade well-being experience for enterprise customers.
IDC, a global market intelligence firm in its most recent market forecast reported that: “44% of organisations worldwide, and 47% in the United States, plan to increase spending on employee experience technology.”
Healthy employee experiences
Limeade helps customers maximise business results through its science-based, immersive employee well-being experience.
Whereas TINYpulse’s software establishes a two-way dialogue between managers and employees, resulting in a flywheel of input, feedback, and action as a seamless part of the daily workflow.
TINYpulse founder and CEO David Niu said: “The entire TINYpulse team is thrilled to unite and bring our powerful listening capabilities to the most important thing of all: employee wellbeing.”
The acquisition brings together two companies committed to helping their customers create healthy employee experiences.
Workforce to be integrated
Both TINYpulse founder/CEO David Niu and president/COO, Dave Smith are committed to maintaining business consistency and executing the longer-term business plan.
The full US and Vietnam-based TINYpulse workforce will be integrated with the Limeade team methodically over time.
Both companies will continue to recruit and hire passionate, purpose-driven individuals committed to shaping the future of work.
Continuing revenue of US$6.5 million
TINYpulse ended FY2020 with continuing revenue of US$6.5 million with an adjusted EBITDA loss of US$1.2 million.
Additional earnouts tied to additional contracted annual recurring revenue (CARR) growth may be payable over the 18 months following the close of the transaction.
The transaction consideration is all cash and will be funded from existing Limeade cash reserves and is expected to be completed by the end of July 2021.
Limeade expects to update its current financial year guidance following the completion of the TINYpulse acquisition.