10 Year Old Enterprise SaaS (MDM) Company - $600,000 Cash Included!

General Highlights
10 year old validated and competitive Enterprise MDM software
Over €600,000 in cash in the bank (must be added to the sale - so effective price is 1.4M USD plus 600k EUR of working capital which you will get back.
Notable client base includes national educational institution, banks and energy enterprises
Reasonable valuation of 4.7x adjusted SDE multiple given the stability of cash flows
Niche
The company’s area of expertise includes Mobile Device Management (MDM), Cloud Solutions, Enterprise Mobility Management, Enterprise Solutions, IT Security and Management, Product Development, and Software Development. The company provides its clients with the most relevant solutions to address their IT needs and requirements, while minimizing security risks. In a nutshell, the company’s software allows enterprises to centrally and remotely manage mobile devices. Device management may include setting up the device, modifying configurations, installing required apps, transferring files, provisioning access to the enterprise’s database, configuring security settings and performing updates.
Customer Base
Their products are being used by more than 1,100+ organizations with over 220,000 mobile devices, however the majority of those are using the MDM solution as a Cloud service (SaaS) provided via CARNet. CARNet - Croatian Academic and Research Network (www.carnet.hr) is a public institution operating within the Ministry of Science and Education of Republic of Croatia in the field of information and communication technology and its application in education on national level. It includes 1,200 public schools in Croatia which are using over 200,000 mobile/tablets devices for primary education.
In terms of direct customers with an active billing relationship, it currently has around 20 organizations. With most of its customers, it has a multiyear business relationship with a very low churn rate. Most of the customers renew their contracts (licensing or services) on a yearly or multi-year basis. Some of the customers are managed via partners.
Customer base spans across many spaces: Banking and Finance, Public sector, Education, Energy, FMCG, Hospitality, etc. and include reputable organizations such as Privredna banka Zagreb (second biggest bank in Croatia), HEP Group (national energy company), Ministry of Foreign and European Affairs to highlight a few.
Although the MDM solution is a vertical type of a solution and can be used in various scenarios (on-premise, private or public cloud) the company is primarily focused on customers that require “on-premise” solution or MSPs that would use the company to build out and offer their own MDM SaaS from the Cloud.
Revenue Sources
Revenue is being generated mostly from sales of software licenses. This represents on average over 70% of the company's revenue. The rest is revenue from services associated with implementation of the software, support and maintenance. Over the past two years, recurring revenue represented 80% of total. The company's largest customer CARNet, which signed the contract in 2019, is responsible for approximately 72-75% of the total sales over the past three years.
Currently, the Company has 3 finished and commercially mature products deployed in production environments by customers. In order of maturity and business importance/impact those are:
The Company - €1.9 million combined over the last three years or 95% of total
Revenues for this product increased from €575,000 in 2020 to €777,000 in 2022.