SONET

SONETEducation Software Company

Transaction Type: M&A | Transaction Amount: $13.5M

SONET is an established software company with clients in Australia, NZ and throughout Europe.

SoNET’s Assessment Master is a feature rich and comprehensive online assessment software solution. Intuitively designed and built for accessibility, this online testing software provides a sophisticated platform to allow flexible assessment from any location across multiple delivery methods.

challenge

SONET provides a sophisticated online assessment platform sold to governments around the world for assessing student performance and learning. The company also operated a legacy desktop cloud hosting business.

  • Legacy Cloud Desktop Divestment

    The Cloud Desktop business was consuming resources and management time. The owners wanted to carve out the asset and sell this business unit before embarking on a sale of the core business.

  • Assessment Platform Sale

    The core business was an online assessment platform sold to governments around the world. The founders and owners of SONET were looking for a strategic buyer for the Company.

solution

Shape Capital assisted SONET to carve out the legacy cloud desktop business. It ran a competitve bid process and targeted local Managed Services & IT Companies with an offer to acquire the business unit.

For the core business, Assessment Platform, Shape Capital built a targeted distribution list of potential buyers including public companies, private equity and strategic buyers in Australia, USA, Canada and UK. It provided strategic advice to SONET and also created an Information Memorandum, marketing materials, NDA, and built a data room for the invited buyers.

results

For the sale of both business units, Shape Capital ran a competitive bid process by inviting qualified buyers into a highly structured process. Buyers were given deadlines to make bids for the businesses and provide acquisition terms including valuation, list of conditions precedents, how acquisition is funded, and due diligence requirements.

Shape Capital successfully sold the legacy desktop assets to a local Managed Services company and also sold the Assessment Platform business to UK based publicly listed company, RM plc, for $13.5 million all cash deal.

The sale process had attracted over 16 interested parties.