Hilan software services company acquires "hashavshevet" for NIS 210 million

Hilan is embarking on a new, large, and substantial deal: the software services company reported that it has signed a memorandum of understanding to purchase the "hashavshevet" company from Avraham and Rachel Meidan for NIS 210 million.
"hashavshevet" deals with inventory management and accounting software and employs 200 people - its sales turnover is NIS 58 million per year.
The acquired company has intellectual property rights to its product, which results in a high multiplier on sales - as the owner of the software, its profitability rate is very high, more than a marketing company (a similar deal was made about a year ago when the Fortissimo fund sold control of Priority for NIS 900 million ).
Hilan will also pay royalties at a rate of 15% -35% for each of the years 2031-2022 from any increase in the income of an accountant abroad. According to the report, as of today this is a negligible income.
The acquiring company, which is controlled by Avi Baum, is traded on the Tel Aviv Stock Exchange at a value of NIS 3.95 billion and it ended the first half of 2021 with a profit of NIS 70 million on revenues of NIS 850 million.