Southport Ventures is under LOI to acquire a laboratory information management system (LIMS) SaaS business that provides mission-critical software to agriculture, clinical, food & beverage, cosmetics, material, chemical, cannabis, and environmental labs.

Some highlights of the deal:

- Mission-critical, B2B SaaS with high growth, good retention, significant expansion revenue, and the vast majority of sales being greenfield (labs moving from spreadsheets or home-grown software to this solution).

- $1.2M ARR at the end of 2021 and $965K in services (mostly implementations).

- 52% ARR growth and 108% net revenue retention in 2021.

- NRR has consistently been over 100%. 72% of customers in the 2020 cohort expanded contract in 2021.

- Asset purchase and seller rolling 15% equity.

- No customer concentration. The largest customer is at 3.4% of ARR.

- ARR at about $1.5M and we've negotiated what we believe is a very attractive purchase multiple.

- Significant opportunities to expand the product offering, increase pricing, and gain share of wallet.

We are mid-career software operators (combo of product management and engineering backgrounds) with extensive experience in building software and scaling businesses (5th employee at, which we scaled 5 to ~200 people and multiple billions in GMS before selling it to Etsy). We bought a smaller SaaS business 14 months ago and have grown revenue by over 50% since the purchase while keeping profit margins well over 50%.

We are seeking investors who are aligned with the growth opportunity and who have an interest in B2B, vertical-market SaaS businesses. We are also seeking connections to strategic advisors or investors with experience in the testing laboratory markets that this business serves.

Please comment below or message me on searchfunder if you'd like to learn more.