Family Zone Cyber Safety

A$142m acquisition of Smoothwall

August 2021

In August 2021 Family Zone Cyber Safety, an ASX-listed business focussing on providing cyber safety solutions to schools, students and families, announced the acquisition of Smoothwall for A$142 million, representing a revenue multiple of c. 4.7x. Smoothwall is the UK’s leading provider of K-12 digital safety solutions and an industry pioneer with a mature filtering product and has a c. 38% market share. Smoothwall has also developed a monitoring product that is expected to drive significant growth supported by recently announced regulatory changes in the UK. Smoothwall provides services to c. 12,500 schools, generates c. $A30m of recurring revenue and delivered EBITDA of c. A$7m in the financial year to March 2021.

The combined Family Zone and Smoothwall business will have annual recurring revenues of c. A$44m, service approximately 9m students and be a market leader in filtering and compliance, data analytics and monitoring, parental controls sectors and a leading challenger in classroom management.

Family Zone funded the acquisition through a fully underwritten institutional placement of A$71m and a pro-rata accelerated non-renounceable entitlement offer of A$75.4m to raise gross proceeds of a. A$146.4m.

Azure acted as financial adviser to Family Zone on the acquisition including valuation, structuring, strategic advice and negotiation of relevant transaction agreements.