- Acquisition to be between $2.6M and $3.9M
- The remaining portion amounts to 57.8%
- Expects to be effective on 1 July 2021
Valuations company Acumentis (ASX: ACU) has made another acquisition for the year; the remaining share of Acumentis WA.
The move follows the acquisition of Tasmanian valuations firm Saunders and Pitt in March. Acumentis is advancing on its strategy to improve client experience by moving towards an “Australia-wide coverage via a single entity, that is 100% controlled by the Company.”
“With a single entity operation, we are able to further our company and service-line developments, with the immediate beneficiaries being our loyal clients.”
Keith Perrett, Chairman of Acumentis
The deal
Acumentis, an ASX-listed company, is acquiring the “remaining 57.8% of its Western Australian associate Acumentis (WA) Holdings Pty Ltd (“ACU WA”).”
“We are delighted to come together fully with Acumentis, having traded for a number of years within the Acumentis umbrella and systems”
Ross Sharp, Chariman of Acumentis WA
Acumentis values ACU WA at “4.5x annual PBT plus net cash balances at 30 June 2021” and said the total acquisition price is set to a minimum of $2.6 million and a maximum of $3.9 million.
Initially settled by a mix of 55% cash and 45% shares, the acquisition will be effective from July this year.
The expectation
Acumentis WA “provides valuation and advisory services throughout WA and leads operations in South Australia and the Northern Territory.”
“We see this as the easiest of integrations given we already operate on common valuation systems, IT, accounting and management systems”
Ross Sharp, Chariman of Acumentis WA
The addition is expected to bring in an additional $7 million to $8 million in revenue “to the consolidated results of Acumentis”.
The context
Acumentis increased its share in Acumentis WA back in September 2019.
Previously 25%, the company then increased its share to 42.2%, “and entered into an
agreement granting Acumentis a call option on the remaining shares of ACU WA exercisable between 2024 and 2026.”
