Smartgroup Corporation Ltd completed the acquisition of Epac Salary Solutions Pty Ltd from Royal Automobile Club of Victoria Limited.
October 19, 2017
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Smartgroup Corporation Ltd (ASX:SIQ) entered into an agreement to acquire assets of Epac Salary Solutions Pty Ltd from Royal Automobile Club of Victoria (RACV) Limited for AUD 34 million on September 8, 2017. As per the terms of the transaction, AUD 7 million will be retained in escrow payable 12 months from the date of completion, subject to meeting certain operational metrics. In a related transaction, Smartgroup Corporation Ltd acquired ABM Pty Ltd on August 23, 2017. The transactions have been funded through cash reserves and existing debt facilities. Epac Salary Solutions Pty Ltd reported revenues of AUD 16.6 million and normalized EBITDA of AUD 5 million for the financial year ended June 30, 2017. The key personnel of Epac Salary Solutions Pty Ltd will be retained. The transaction is expected to close on November 1, 2017 and is expected to have an EBITDA contribution of AUD 0.8 million for calendar year 2017 and an EBITDA contribution of AUD 9 million for calendar year 2018. The earnings per share accretion of 12% for calendar year 2018, implied acquisition multiple of 3.3x EBITDA for calendar year 2018 and gearing of 1.3x pro-forma LTM EBITDA will be the combined acquisition multiples for both transactions. Baker Tilly Roelfs AG acted as accountant advisor for Royal Automobile Club of Victoria (RACV) Limited. Baker Tilly Roelfs AG acted as accountant advisor for Smartgroup Corporation Ltd. Pitcher Partners Sydney Pty Ltd. acted a s accountant advisor to Smartgroup Corporation Ltd. Michael Sonego of Pitcher Partner Melbourne, acted as financial advisor to Royal Automobile Club of Victoria (RACV).
Smartgroup Corporation Ltd (ASX:SIQ) completed the acquisition of Epac Salary Solutions Pty Ltd from Royal Automobile Club of Victoria (RACV) Limited on October 20, 2017.
Smartgroup Corporation Ltd is an Australia-based company, which is engaged in providing outsourced administration, fleet management, and software, distribution, and group services. The Company operates through three segments: Outsourced administration (OA), Vehicle services (VS), and Software, distribution, and group services (SDGS). The OA segment provides outsourced salary packaging services, novated leasing and associated products, and outsourced payroll services. The VS segment provides end-to-end fleet management services. The SDGS segment provides salary packaging software solutions, the marketing of salary packaging debit cards, distribution of vehicle insurance and workforce management software to the healthcare industry. The Company operates through a portfolio of brands including Smartsalary, Smartleasing, Smartfleet, Smartsalary Payroll Solutions, Autopia, Advantage Salary Packaging, AccessPay, PBI Solutions and Health-e Workforce Solutions.