Founded in 2001, Brighton-based Groundsure supplies environmental data and reports for the residential and commercial property markets on issues including land contamination, flooding, mining and ground stability. It claims to be involved in more than half of the UK’s residential property transactions.
In the twelve months ending December 2019 Groundsure generated revenue of £20m and an operating profit (EBITDA) of £9.3m - an operating margin of 46%. The purchase price of £170m thus represents a valuation 18 times EBITDA.
Announcing the sale Ascential stated "The purchase price of £170m comprises an initial cash consideration of £140m (subject to customary closing adjustments) plus a £30m interest-bearing vendor loan note repayable on or prior to 31 December 2023".
Headquartered in Sydney and with more than 800 employees, ATI Global is a portfolio of companies providing legal technology, software and information services. Groundsure will continue to operate as an independent standalone business led by its existing management team with operational autonomy, reporting to ATI Global’s executive chairman.
Dan Montagnani, executive vice president of Groundsure said the company would maintain its commitment to customer excellence and investment in product development and innovation following the acquisition.
"We are thrilled to be joining the ATI family of businesses on our next chapter of growth and success," said Montagnani. "With ATI Global we will sit alongside like minded businesses with similar values and goals for delivering technology led optimised customer outcomes."
Stephen Wood, executive chairman of ATI Global said: "We are excited to announce the acquisition. The Groundsure team has a long-standing history of providing its customers with insights to make smarter property and land use decisions. We share a strategy of building smart technology that makes clients’ lives easier by revolutionising workflow and stimulating growth."