K2fly (ASX: $K2F) Scheme Implementation Deed with Accel-KKR

K2fly Limited (K2F, K2fly or the Company) (ASX: $K2F) has entered a Scheme Implementation Deed with Argyle Bidco, a wholly owned subsidiary of Accel-KKR, under which Accel-KKR will acquire 100% of the shares in K2fly by way of a Scheme of Arrangement for consideration of $0.19 cash per share. The company reported Annual Recurring Revenue (ARR) of $9.0m in Q4 FY2024, marking a 20% increase from Q4 FY2023 driven by new sales and contract renewals. Additionally, new Resource Disclosure contracts were signed with Vale and Lundin Mining, contributing to a total new ARR of AU$653k.

Nic Pollock, CEO of K2fly on Q4 FY24 activities

'Q4 FY24 is a pivotal moment in the history of K2fly in our Software as a Service (SaaS) strategy. Despite flat revenue growth, our core metric of ARR growth continued at 20% YoY as we continue to focus on landing and expanding our SaaS ARR license revenues. We have seen significant new client acquisition and ARR in our Americas operations with the addition of two new name accounts (Vale and Lundin Mining) contracting onto the new Resource Disclosure platform for a combined AU$653k in additional ARR. Our final quarter delivered a Net Operating Cash inflow of $1.2m, consistent with our historical results which show a concentration of collections in Q4 due to the annual nature of our licence billing cycle and portfolio anniversary dates and including the benefit of our implemented savings plan. Finally, K2fly concluded our strategic review process that was commenced in November 2023.'

Summary of K2fly Q4 FY2024 Activities

K2fly Limited (K2F) reported a significant increase in Annual Recurring Revenue (ARR) of $9.0m in Q4 FY2024, representing a 20% growth from Q4 FY2023. The company signed new Resource Disclosure contracts with Vale and Lundin Mining, contributing to a total new ARR of AU$653k. Despite flat revenue growth, the company's focus on landing and expanding their SaaS ARR license revenues has shown promising results. K2fly's strategic review process concluded with a binding offer from Accel-KKR to acquire 100% of the shares in K2fly, providing the company with the best partner to continue delivering net positive Resource Governance solutions for its clients and a stronger company for its staff to thrive.