Tear Sheet: CE Intermediate I LLC (Clubessential) Will Continue Its Track Record Of Strong Growth And Solid Cash Flow Generation

In May 2024, Clubessential issued $85 million in incremental debt to acquire RecDesk and taskTracker, both of which are complementary, value-add offerings that will bolster the company's existing suite of products. We expect the acquisitions to combine to contribute around $5 million in incremental revenue this year and $10 million in 2025. The company has also generated strong organic growth. Its software as a service (SaaS) offerings grew in the midteens area this year, but we believe payments revenue is expanding by at least double that. Typically, the company receives only a modest referral fee for payments processed on its platform, but it also has payfac capabilities whereby it controls more of the transaction and earns a greater fee as

...October 18, 2024 Payfac adoption, cross selling, and recent acquisitions will contribute to double digit annual growth over the next two years. In May 2024, Clubessential issued $85 million in incremental debt to acquire RecDesk and taskTracker, both of which are complementary, value-add offerings that will bolster the company's existing suite of products. We expect the acquisitions to combine to contribute around $5 million in incremental revenue this year and $10 million in 2025. The company has also generated strong organic growth. Its software as a service (SaaS) offerings grew in the midteens area this year, but we believe payments revenue is expanding by at least double that. Typically, the company receives only a modest referral fee for payments processed on its platform, but it also has payfac capabilities whereby it controls more of the transaction and earns a greater fee as a result. Payment growth is driven by transitioning existing clients and recent acquisitions from the referral...

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