| Small & micro cap project
Asure Software: Sign of moat & debt reduction
Asure Software (ASUR)
M.Cap: $135 million
Asure Software, Inc., headquartered in Austin, Texas, provides innovative and flexible SaaS-based cloud platforms that help clients worldwide elevate how, when, and where work gets done throughout the employee lifecycle.
Sign of Moat
Recurring revenue to account 90% after the sale of Workspace segment
In October 2019, the company agreed to sell its Workspace Management business for $120 million. After the sale of this segment, Asure Software will be a pure-play human capital management (HCM) focused company, and the recurring revenue mix will be more than 90% of total revenue.
Debt: The company expects to pay down the majority of its debt from the proceeds of the sale of its workforce management business, and save roughly $9 million of annual interest expense. Moreover, the vast majority of the gain on the sale of the segment will be offset by the company’s accrued NOL’s.
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