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.

Notes
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.