SUBSEQUENT EVENTS

3 Months Ended

Dec. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

NOTE 10.  SUBSEQUENT EVENTS

On January 30, 2018, we acquired Angoss Software Corporation, an Ontario corporation (“Angoss”), by purchasing all of its outstanding capital stock from its current stockholders for $24.5 million in cash, adjusted for net indebtedness and variance from target working capital.  The share purchase agreement contains usual and customary representations and warranties, covenants and indemnification provisions.The acquisition will augment Datawatch’s Monarch data intelligence offering with expanded capabilities that enable data scientists to perform predictive and prescriptive analytics in a wide variety of enterprise applications. 

We entered into a new credit facility with a bank on January 24, 2018.  The credit facility includes a $10 million term loan and a $5 million revolving line of credit, secured by substantially all of the assets of Datawatch, excluding intellectual property.  The term loan, which was used to fund a portion of the Angoss acquisition, bears interest at the prime rate plus 1%, is repayable based on a 48-month amortization schedule, matures on January 24, 2021, and is subject to prepayment penalties.  The line of credit, which we intend to use for working capital and general corporate purposes, bears interest at the prime rate plus 0.5% and is due and payable on January 24, 2020.  Commitment fees of $50,000 and $17,500 were paid for the term loan and line of credit, respectively.  Availability under the line of credit is based on the amount of eligible accounts receivable from time to time.The credit facility agreement contains various conditions, covenants and representations with which the Company must be in compliance in order to borrow funds and to avoid an event of default.