Business - Adaytum goes West with #3m
Adaytum, the Bristol-based budgeting and planning software specialist, is to become a US corporation after landing a $5.1m (#3m) cash injection from a group of private US investors including St Paul Venture Capital and Hambrecht & Quist, writes John Stokdyk.
The corporate relocation to the US follows a year-long search for expansion capital by Adaytum chief executive Guy Haddleton, who founded the company in 1990 but now lives in Minnesota. Mike Mehr, the financial controller at Adaytum’s US headquarters, will take responsibility for consolidating group accounts under US GAAP.
Richard Drake, who joined Adaytum in November last year, will take responsibility for managing the company’s finances in the UK and the rest of the world.
According to Drake, there were no tax or accounting advantages in Adaytum becoming a US company, as it used the same revenue recognition and development write-off rules on both sides of the Atlantic.
‘We’re not as mature in the US as in the UK,’ said Drake. ‘Most of our growth is going to come in the US, so it made sense to locate there. It was an easier way to get the company financed for the future.’
The new investors will take an undisclosed equity stake in Adaytum and the money will be used to recruit staff and enhance the Adaytum Planning software.