Limeade (ASX: LME, or the Company), the immersive employee well-being company, today announced its acquisition of TINYpulse, a leader in employee listening software.
The acquisition brings together two companies committed to helping their customers create healthy employee experiences.
The acquisition comes at a time when companies worldwide are increasing their investment in understanding and tracking employee sentiment and well-being. In its most recent market forecast, IDC reported1 that 44% of organizations worldwide, and 47% in the United States, plan to increase spending on employee experience technology.
“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,” said Henry Albrecht, Limeade Founder and CEO. “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 well-being solution that fits seamlessly into people’s daily work.”
TINYpulse was founded in 2012 with the mission to make employees happier. Today, the company serves more than 500 businesses ranging from startups to the Fortune 500. 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.
“Limeade and TINYpulse are two Seattle-area companies focused upon shaping the future of work,” said David Niu, TINYpulse Founder and CEO. “The entire TINYpulse team is thrilled to unite and bring our powerful listening capabilities to the most important thing of all: employee well-being.”
Limeade helps customers maximize business results through its science-based, immersive employee well-being experience. TINYpulse 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. 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.
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 U.S.- and Vietnam-based TINYpulse workforces will be integrated with the Limeade team methodically over time. Both companies will continue to recruit and hire passionate, purpose-driven individuals committed to shape the future of work.
Under the terms of the acquisition, Limeade agrees to merge with Seattle-based SaaS (software-as-a-service) employee listening provider Tiny HR, Inc. DBA TINYpulse for $8.8 million USD for 100% of the issued capital of TINYpulse. Additional earnouts tied to additional contracted annual recurring revenue (CARR) growth may be payable over the 18 months following the close of the transaction. TINYpulse ended FY2020 with continuing revenue of $6.5 million with an adjusted EBITDA loss of $1.2 million. 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 FY21 guidance following the completion of the TINYpulse acquisition.
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