Ingersoll Rand a global provider of mission-critical flow creation and industrial solutions, completed the Maximus Solutions acquisition in an all-cash transaction, valued at CAD$135.4 million. Using Ingersoll Rand Execution Excellence (IRX) as the catalyst to drive the transaction to a swift completion, Maximus Solutions will join the Precision and Science Technologies segment.
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“We are pleased to welcome the Maximus Solutions team to the Ingersoll Rand family. The profile and characteristics of this high quality, high return on capital and highly strategic acquisition are representative of how we are driving our inorganic growth strategy,” said Vicente Reynal, chief executive officer of Ingersoll Rand. “Maximus Solutions has shown strong double digit growth over last five years, is focused on sustainable end markets that tend to grow well above GDP rates and has a strong aftermarket profile including a software as a service (SaaS) revenue stream. We anticipate it will yield a single digit post-synergy Adjusted EBITDA purchase multiple by year three of ownership.”
Maximus Solutions is a provider of digital controls and Industrial Internet of Things (IIoT) production management systems for the agritech market. The system is a centralized controller and IIoT platform, which connects to farm devices and simplifies facility management. The System tracks the state of farm infrastructure and automates tasks based on artificial intelligence (AI) logic. Based in Montreal, Canada, Maximus Solutions has approximately 100 employees and annual revenue of approximately CAD$40 million. The company has experienced greater than 30% revenue CAGR over the past five years, and is expecting strong double digit growth over the next five years. In 2021 Maximus Solutions is expected to achieve Adjusted EBITDA margins in line with current PST segment levels, and Ingersoll Rand expects to achieve meaningful margin improvement.
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