Research Solutions, Inc. completed the acquisition of Resolute Innovation, Inc. for 44.6 million.
July 30, 2023
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Research Solutions, Inc. (NasdaqCM:RSSS) acquired Resolute Innovation, Inc. on July 28, 2023. As of June 30, 2023, ResoluteAI had approximately $1.3 million in Annual Recurring Revenue under contract.
Research Solutions, Inc. (NasdaqCM:RSSS) completed the acquisition of Resolute Innovation, Inc. on July 28, 2023. The initial purchase consideration, net of cash acquired, was approximately $2.9 million. In addition, the acquisition agreement includes an earnout that will be based upon the product of three and one half multiplied by ending annual recurring revenue as of January 31, 2025 less the agreed upon Enterprise Value of $3.4 million. The acquisition is not expected to have a material impact on the Company's consolidated financial statements and notes thereto. As per the filling of November 14, 2023, The total purchase consideration for ResoluteAI, net of cash acquired, was approximately $4.6 million. The consideration includes an initial payment of $2.7 million and a contingent earnout that has a fair value of $1.9 million as of September 30, 2023. The contingent earnout payment will be based upon the product of three and one half multiplied by ending annual recurring revenue as of January 31, 2025 less the agreed upon Enterprise Value of $3.4 million.
Research Solutions, Inc. is a holding company. The Company provides two service offerings to its customers: a cloud-based software-as-a-service (SaaS) research platform (Platforms) typically sold through annual auto-renewing license agreements and the sale of published scientific, technical, and medical (STM) content sold as individual articles (Transactions) through the Platform. Its cloud-based SaaS research platform consists of proprietary software and Internet-based interfaces sold to customers for an annual subscription fee. Its platform allows customers to initiate orders, route orders for the lowest cost acquisition, manage transactions, obtain spending and usage reporting, automate authentication, and connect to in-house and third-party software systems. Customers can access the Platform through online Web interfaces and through Web service APIs that enable customers to leverage Platform features and functionality from within in-house and third-party software systems.