Annual Revenue: $974,000
Net Cash Flow: $333,000
Industry: Technology, Software
Location: New Jersey
This company has been sold. Long Established software company provides file transfer software, including Secure FTP, that secures the exchange of files between a company’s business and its customers, business partners, as well as provide file distribution services for web-based applications.
The company has been creating and selling data communications software since the 1980s. The company’s products are used primarily by Fortune 1000 companies primarily in banking, healthcare, government, insurance and manufacturing. Data communications gateway software is the company’s primary business.
The company’s main product, called the Secure Network Gateway, consists of an overall, controlling automation program, a group of job processing services, including a scheduler and alert mechanisms, several secure IP products covering SSH, SSL and HTTPS, some directory management services and several file-processing applications.
Their typical customer is a Fortune 1000 company. The banking and financial services market makes majority of their customers, their products have proven successful for banking, healthcare, insurance, manufacturing, and government. Their current client roster is 39 for 2017. These are long-standing elite accounts, some go back to 1990s and clients rarely leave unless they merge with other companies that may have a different vendor. Their largest current client provides only 6% of revenue, so the sales are not concentrated. Most of their clients are in the Eastern US, but they do have some in Hawaii, Wisconsin, Kansas, Kentucky, Michigan, California and Manitoba, Canada. 80% of clients pre-pay in advance annually, 20% are billed and collected on a monthly basis.
The current staffing are 4 FT employees, 2 are admins 1 is a CFO and 1 is Payroll/Benefits coordinator. The other 2 remaining people are software support in which one wants to retire and the other could be retained post-transition. All employees are willing to stay on through the transition.
Terms and Conditions?:
Reason For Sale:
Retirement of Seller.
Training & Support:
The firm principals are commited to staying through a transition.
Year Established: 1991
Absentee Owner?: Yes