OXATIS (EPA:ALOXA) - Oxatis : Acquisition of PowerBoutique, French specialist in e-commerce SaaS with a portfolio of 1,500 high-potential customers. €2.5 million additional revenue over the full year. Ambitions confirmed.

Transparency directive : regulatory news

25/07/2018 17:40

PRESS RELEASE
Paris, 25 July 2018

  Acquisition of PowerBoutique, French specialist in e-commerce SaaS with a
                     portfolio of 1,500 high-potential customers

               EUR2.5 million additional revenue over the full year

                                Ambitions confirmed

Oxatis (ALOXA - FR0013328184), today announced the acquisition of
PowerBoutique, a French company specialising in e-commerce SaaS. The deal is a
perfect fit with its development plan to build a European leader in e-commerce
SaaS. The acquisition was approved by the Board of Directors on 20 July 2018.
At the end of the half-year, Oxatis also confirms its ambitions for growth and
profitability announced during the IPO.

PowerBoutique was created in 2001 and is one of France's foremost e-commerce
SaaS companies with more than 1,500 e-commerce clients. Its SaaS technology
platform, developed over 15 years, offers companies a turnkey e-commerce site.
The revenue model is identical to that of Oxatis: clients pay a subscription to
access the SaaS solutions plus extra billings for any add-on services they
request.

Over 20% increase in the client portfolio

The PowerBoutique acquisition has substantially boosted Oxatis's position in
the French market. PowerBoutique brings with it more than 1,500 new merchants
and over EUR250 million in orders, raising Oxatis's client portfolio from 7,000
to nearly 8,500 merchants and its order book to more than EUR600 million
annually.

The new client base will create value from day one and promises major value
gains in future thanks to Oxatis's strategy of moving the whole of its client
portfolio upmarket into higher value added services.

This major increase in the client portfolio gives the group a new competitive
advantage and lays down a marker for consolidation of the market both in France
and internationally.
The next few months will be devoted to integrating Oxatis functionalities to
multiply the value-creation potential of the client base and relaunching the
marketing momentum of the newly acquired company.

PowerBoutique customers will benefit from Oxatis's technological lead to access
400 functionalities developed to support successful e-commerce: omni-channel
deployment, a mobile-optimised version, B2B functionalities, SEO and links to
online marketplaces, the management of catalogues and orders, ERP integration
etc.

New technology assets and more hosting capacity

On the technology front, this acquisition will allow Oxatis to integrate assets
developed by PowerBoutique in its SaaS universe over more than 15 years. Oxatis
will also expand its hosting capacity without any new internal investment
thanks to the integration of PowerBoutique's hosting solutions.

A fully trained and experienced team

Finally, with this transaction, Oxatis strengthens its organisation with the
addition of 30 trained, experienced and already operational employees. This
injection of human resources will be a key asset as the Group pursues its
ambitious growth plans, enhancing its direct marketing capacity. They will also
help consolidate the consulting expertise required to support the upscaling of
the client base.
Oxatis will also profit from the expertise of one of the three co-founders of
PowerBoutique, who will remain engaged with the company and fully committed to
the success of the shared project.
At end-2017, PowerBoutique posted revenue of EUR2.8 million with EBITDA of
nearly EUR500 thousand and an operating loss of nearly EUR240 thousand.

In due course, the deal will be fully financed from debt. In this way,
following the more than EUR13 million raised by the April 2018 IPO, Oxatis will
retain its full financial capacity to pursue growth investments and seize new
acquisition opportunities.
PowerBoutique will be consolidated from 25 July 2018.

H1 2018 revenue: EUR5.0 million

In H1 2018, revenue was EUR5.0 million, up 4.2%. Aside from a mixed market
environment (including 5 fewer working days than in 2017 in May alone), this
trend reflects the shift in the billing system toward performance- based
subscriptions. This change has a short-term impact on revenue for the period
but will, as from H2, be a decisive factor in developing business volumes and
expanding margins.

Growth over the half year also reflected the transition to focus on winning
higher value-added and earnings- enhancing accounts with a longer sales cycle.
Similarly, to leverage scalability effects, the company emphasised indirect
sales: acquisition costs were met by the partner but this had the effect of
extending the sales cycle. Finally, activity in H1 does not yet reflect the
planned investments using the proceeds of the IPO that will drive future
growth. Investment of these resources over coming months will be another growth
accelerator.

Over the period, France (84% of revenue in H1) remains the main growth engine
with revenue of EUR4.1 million, up 11%.

Double-digit organic growth expected in H2

The benefits of changing the revenue model and an intensified marketing and
sales drive should be reflected in revenue gains as from H2. The next few
months will also be helped by accelerating volumes of indirect sales. On this
point, Oxatis announced in June a new marketing partnership with the Crédit
Mutuel CM11 Group to market the Group's e-commerce SaaS offer through all its
banking networks (its clients include two out of five companies in France).

In light of these positive factors, Oxatis is confident that it can achieve
double-digit organic growth as from H2.

Activity in H2 will also benefit from the first months' integration of
PowerBoutique, whose contribution to revenue over the period should exceed EUR1
million.

Ambitions confirmed

Oxatis confirms its ambitions for 2020: to double in size and break EUR20
million in revenue. Profitability targets are also confirmed with the aim of
generating positive EBITDA as from 2020 and earning double-digit operating
margin within five years.

Oxatis therefore remains on course toward its ambition of building a European
leader in e-commerce SaaS based on its model of a technological lead, marketing
drive and an aggressive acquisition strategy.

                                 - END -

ABOUT OXATIS

Since its creation. Oxatis has aimed to enable SMEs to take advantage of
e-commerce opportunities by giving them access to technological solutions that
were previously reserved for leaders in the field of online sales. To succeed.
Oxatis has developed a SaaS platform allowing companies to benefit from over
400 features enabling them to launch and develop their merchant site. The
success of this technology platform has been quick. In 2017. Oxatis already had
nearly 7,000 customers. The company operates in four European countries
(France. United Kingdom. Spain. Italy). In 2017. Oxatis reported revenue of
EUR9.6 million. an increase of 31%. The loyalty of its SaaS customers means
that this growth is accompanied by a high level of recurring activity: 83% of
total revenue in 2017. For more information. visit www.oxatis.com.

CONTACTS

Oxatis
Jean-Christophe Brun
+33 (4) 86 26 26 26
investor@oxatis.com

Financial Communications
Victoire Demeestère
+33 (1) 56 88 11 24
vdemeestere@actifin.fr

Corporate Press Relations
Bruno Lorthiois
+33 (6) 78 97 07 24
blorthiois@lablcom.net

Financial Press Relations
Isabelle Dray
+33 (1) 56 88 11 29
idray@actifin.fr

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OXATIS (EPA:ALOXA) - Oxatis : Acquisition of PowerBoutique, French specialist in e-commerce SaaS with a portfolio of 1,500 high-potential customers. €2.5 million additional revenue over the full year. Ambitions confirmed.

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