PENSOL is a software developer and solution provider of a globally competitive suite of Pension Administration systems used to administer plans for over 2 million members across most major North American and international markets.  The Board of Directors of PENSOL has been approached by a potential buyer wishing to acquire them and they have engaged Tequity to assist in exploring their strategic alternatives.

Products / Services

PENSOL implements and supports what numerous third parties acknowledge as one of the world's leading solutions to manage the administration of Pension plans.  Available as either Software as a Service (SaaS), or a Software on Premise (SOP) solution, the company provides comprehensive and flexible solutions for private sector and public sector pension plans, administered by plan sponsors, third party administrators, and financial institutions. 

In a single unified SOA architecture, its software handles defined benefit, defined contribution and hybrid pension plans.  It provides for the administration of insured group benefit plans (life insurance, dental, extended health etc.) as well as pensioner payroll.  Architected from the ground up for the Internet, the software provides complete self-service capability for employers and plan members, using standard Web browser-based interfaces.   The technology supports multiple languages, multi-currency transactions, and international reporting requirements.  A strong commitment to quality has enabled the firm to achieve and maintain ISO 9001 certification for the last decade.

Through the use of a strong integrated workflow design, the systems have been very effective at reducing the time and cost of implementing systems and training new staff at client sites.  PENSOL software’s open API permits easy integration with external systems such as asset management and insurance claims processing solutions.

A key competitive advantage is in the unique unified data model, developed over two decades,  that supports such diverse functionality on a single unified platform.  Extensive and expensive custom programming has been completely engineered out of the system.   

Support agreements and a growing SaaS business model provide strong recurring revenue.  Consulting, Data-Conversion and Implementation services round out their turnkey offering.

Technologies

PENSOL products have undergone generations of enhancements in their evolution.  In recent years the company designed and engineered a powerful development framework based on ORACLE and Java J2EE products.  It is this foundation on which its current version is now based.  This development environment provides the ability to easily parameterize installations for each client, avoiding expensive code customization and shortening installation cycles.  User-interface, security, reporting, languages, and tailoring for individual client requirements are managed through this toolset.

Clients

The company has very sticky clients that include large well-known firms in the private sector, federal, state, and provincial organizations, insurers, unions and consulting firms.  Increasingly its growth is coming from off-shore international markets.

Sales Model & Markets

The company typically licenses its systems direct to its clients through a small, very experienced and highly focused sales team.  It has initiated a partner program and is introducing additional channels in particular to address the needs of countries which are best served locally.  The company has recently rolled out a hosted SaaS solution which further simplifies client installations and support, and they are observing a reduced timeline for closing new client sales. 

Ownership & Control

Privately held by a small number of shareholders, most of whom work within the company.  The shareholders are prepared to sell up to 100% of equity.

Financial Results

2011 pro-forma statements (FY March 31) show over $9M in revenue, with EBIT of 12%, up substantially from the prior year.

Management & Staf

The Management and Staff have deep experience in the industry and with the applications.  It is their desire to remain active in the company as needed and desired by any acquirer. 

PENSOL Will Be Of Interest To:

PENSOL has a business model, pension solutions and technology platform poised for significant growth and it can scale efficiently.  Among those that may find this of interest are larger firms who bring the resources to accelerate the global growth of PENSOL.  These might include:

• Human Resource, Pension & Benefits Consulting or Outsourcing firms looking to introduce higher levels of technology to their service offering, perhaps buying vs. developing technology to service their internal requirements
• Insurance Companies looking to acquire progressive IT infrastructure and tools to augment legacy applications,
• HR, Benefits, Payroll or Pension Software or Services Firms, particularly off-shore companies seeking a larger North American market presence,
• Software firms aggregating solutions to sell in Financial Services and Human Resources markets.  This would include those wishing to enter the pension market and access large blue-chip clients for cross-selling opportunities,
• Private Equity Investors looking for a profitable high growth investment opportunity,

Serious inquiries only please.

For further information on this opportunity, please contact: Kevin Tribe at 416.483.9400 x101 or ktribe@tequityinc.com