- Entry into Tasmanian market by acquisition to save company $100,000
- The deal is worth $550,000 in total, comprising of cash and shares
- A sub-lease previously announced has fallen through, $0.3M in annual revenue no longer expected
ASX listed commercial and residential property valuations company Acumentis (ASX: ACU) recently announced the acquisition of Saunders & Pitt.
Saunders & Pitt is a small Tasmanian valuations company, with a history Acumentis said: “dates back to 1905,”. The company averaged revenues around $1.5M over the past four years, with an unaudited EBITDA floating around $0.2M, 2019 being the exception at $0.31M.
The acquisition comes as part of the Acumentis growth strategy from 2018, looking to “enhance the Company’s regional coverage and value to clients,”.
“The business has been looking to expand in Tasmania for some time and we are very pleased to be able to do so now by engaging the excellent directors and valuers of Saunders & Pitt.”
Chairman of Acumentis, Keith Perrett
Acumentis said “it has today exchanged on an unconditional agreement to acquire the business and assets of Saunders & Pitt,” the consideration totalling $550,000; the total is comprised of $400,000 in Acumentis shares and $150,000 in cash.
The company also noted that they expect the acquisition to provide a cost saving of over $100,000, doing away with sub-contractors.
Earnings per share are also expected to rise as a result, the “acquisition is forecast to add an additional 5%…”
In other news, Acumentis announced a sub-lease contract has fallen through, the statement previously made on 12 February 2021 in the company’s half-yearly results about a “rental income of $0.3M per annum will be booked from the sub-lease” no longer correct.