Accesso Technology (ACSO:AIM) is a unique growth story on the UK market. We believe it will eventually get taken over at a big premium to the market price.

Accesso has developed best-in-class, cloud-based queue-beating solutions and ticketing technology.

It helps theme park visitors to avoid standing in endlessly long lines. That leaves them with more time to enjoy the attractions with an improved experience, and importantly for site operators, spend more money across other parts of the theme parks.

In demand technology

Owners of some of the world’s biggest attractions are sold on the idea, such as Six Flags Entertainment, the $5bn owner of theme and water parks across the US, plus several zoos.

The UK’s Merlin Entertainments (MERL), which owns Alton Towers, Chessington, and operates several Legoland parks in the UK and Europe under licence, is also a client.

These type of relationships have helped Accesso develop an excellent growth track record. The company is profitable and cash generative.

Big growth opportunities are cropping up in emerging markets across Latin America, the Middle and Far East, including China. Dubai, for example, plans to take on Florida as the world’s number one holiday destination.

Expanding opportunities

Accesso has greater ambitions still, launching itself into the global event ticketing market, currently dominated by Ticketmaster. This encompasses major sporting events and pop concerts, for example.

Accesso believes it can leverage its state-of-the-art, cloud-based technology to undercut commissions earned by rivals, making it a more attractive partner to event organisers and performers.

The $80m (£62.3m) acquisition of TE2 on 12 July is the latest in a long list of deals that should help it meet its objectives. TE2 provides customer engagement software to the leisure, hospitality, entertainment and retail sectors.

Customers include Merlin, Cedar Fair Entertainment and SeaWorld Parks & Resorts, blending a mixture of new customers with opportunities to build deeper relationships with several existing Accesso clients.

Analysts anticipate compound annual growth of about 18% through to 31 December 2019, which would double last year’s $15.3m pre-tax profit to $32.3m. That would almost halve the prospective price to earnings multiple, from roughly 40 to 21.7 by the end of 2018.

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