Carasent acquires InfoSolutions and deepens its moat significantly

On paper, paying 2.8x ARR for a breakeven business looks like a standard, unexciting bolt-on. Here is why acquiring InfoSolutions is a textbook example of how to widely deepen an already deep moat.

This morning, Carasent announced the acquisition of InfoSolutions Sverige AB for an Enterprise Value (EV) of SEK 115 million. InfoSolutions is the leading software provider connecting Electronic Health Record (EHR) systems with laboratories and radiology clinics across Sweden.

While bolt-on acquisitions are a familiar part of the SaaS playbook, this specific deal stands out for its strategic fit. Rather than simply buying a new customer base, Carasent has also acquired a deeper moat. The stock market has sensibly rewarded the share price today, with a small rally (+7% as of now).

Here is my take on the strategic rationale, the impact on Carasent’s moat and the valuation logic.