Dublin aircraft management specialist AerAdvise has acquired Core Financial Systems, a financial software provider owned by Tony Salmon.
Core Financial Systems has a focus on aircraft leasing, financial services and the public sector, and was established by Salmon in 1998.
The deal is being effected through Tekunh Ltd, a vehicle for AerAdvise shareholders Pat Toner and Emmet O’Neill, along with new investor Chirisa Investments, where Colm Piercy is the principal.
AerAdvise and Core Financial Systems will operate as separate but complementary businesses under a group structure. Core’s management team are remaining with the company.
Tony Salmon, who turned 58 this week, commented: “This transaction will enable us to dramatically grow our employee number and our services to support new and existing clients. We are now positioned strongly for significant investment and growth, and I am very excited at what we will achieve over the coming five years.”
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Deal consideration was not disclosed but was likely substantial. Core Financial Systems Ltd had a net worth of €11m in August 2021, including €3m cash and €6.8m in unlisted investments.
The company booked a net profit of €2.8m in 2020/21 and paid Salmon €556,000 in dividends.
Transaction debt finance is being provided by AIB.
Established by Pat Toner in 2018, AerAdvise is a consulting and asset management company working with aircraft leasing clients around the world. It is involved in MRO (Maintenance, Repair and Overhaul) and aviation technology. Clients span investment funds, banks, aircraft leasing companies, asset managers and airlines.
Pat Toner stated: “With powerful backing, we will draw on decades of experience to push the boundaries of technology innovation and remain focused on growing highly skilled jobs, delivering outstanding technology solutions, capabilities and services to our respective customers.
“We expect to be in a position to make a number of additional acquisitions to support our recurring revenue business strategy through the next 24 months.”
Toner added that the group have a number of further acquisitions planned in both the aviation and non-aviation sectors as the company builds out a comprehensive services platform built on a recurring revenue model.
The business is aiming to grow revenue to €30m-€40m by 2025.
AerAdvise was advised on the deal by Clearwater Dublin.
Photo: Tony Salmon (left) and Pat Toner
