Norwegian tender software specialist Xait acquires French proposal management specialist Jack in the Box as part of an international diversification drive into multiple industry sectors and geographies. Jack in the Box’s current managers will continue to head up the company in France.
“Our XaitPorter collaboration software has proven its value for large enterprises in the energy and renewables industry and is perfectly suited for large, complex proposals within any industry. Jack in the Box has a product that fits most of the regular public and private tender processes for enterprises within multiple industries and services, and with a very strong track record in the French market. This is a highly complementary acquisition from a technological, industrial and geographical viewpoint,” says Eirik Gudmundsen, CEO of Xait.
Xait offers a complete all-in-one co-authoring software solution for teams to collaboratively create, manage and produce documents. XaitPorter, the company’s core co-authoring software, enables hundreds of people on multiple locations to work together simultaneously on for example complex tender documents. With XaitPorter, document creation is done up to 70% faster, with higher document quality and higher win rates. The company’s stronghold is in the energy and renewables industry in Europe and USA, but with growing footprint in other industries.
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Leading French player
Jack in the Box was established in 2000. Since then, the company’s proposal software – Proposal Studio – has been utilized on projects in 21 countries worldwide. It is the favored software for French companies that tender for projects in the construction & engineering, business services, finance, and energy industries. The company’s software has more than 150 clients and 7,000 users.
Jack in the Box has offices in Nantes and Paris, France. The company employs 26 people and had annual recurring revenues (ARR) of approximately EUR 3 million in 2021, plus EUR 1 million in service and consultancy revenues.
“The growth in the recent years confirms that the software fits the French market and covers a large range of efficient functionalities. Indeed, most of the Jack in the Box’s clients consider that the software fits their needs and even more,” says Fabrice Peim, General Manager of Jack in the Box.
“Becoming part of the Xait Group will facilitate even more complete product and service offering to our customers. Additionally, Xait has a global footprint that we aim to tap into. Combining the two companies’ technology competence will also allow us to continuously develop the most efficient and easy-to-use solutions, enabling our customers to win new contracts as cost-effectively as possible,” says Eric Legrand, President of Jack in the Box.
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Rapid growth
Xait has identified a three-pronged growth strategy that consists of organic growth from both existing and new clients, plus acquisitions.
Xait’s organic ARR grew by more than 20 percent in 2021, ending at approximately NOK 100 million. Xait’s group revenues were circa NOK 85 million in 2021, with a healthy profit margin.
“The purchase of Jack in the Box is Xait’s third acquisition in just over twelve months. This acquisition is the largest to date and will grow Xait’s ARR with around 30 percent and increase total number of employees to almost 90. In just three years we have tripled our ARR, placing us amongst the world’s largest proposal software players,” says Frank Skavland, CFO of Xait.
The parties have agreed not to disclose the financial details of the transaction, which has been settled partly in cash and partly in shares in Xait. The current managers and shareholders of Jack in the Box, President Eric Legrand and General Manager Fabrice Peim, invest in Xait and will continue to head up Jack in the Box.
“To retain the specialist competence in Jack in the Box is key for us. We are therefore very pleased that key members of the Jack in the Box’s management team continue as both technical and commercial resources and shareholders in Xait. Together we aim to realize growth synergies and capitalize on the untapped potential of our technologies in order to achieve significant international growth in the coming years,” says Eirik Gudmundsen.
