Hubify two complementary, accretive businesses, contributing ~$1.1m EBITDA (post synergies) in FY22
Hubify Limited (ASX:HFY) (“Hubify”, or “the Company”) is pleased to announce that it has finalised the acquisition of two businesses in the telco/managed services space, which are both earnings accretive and complementary to HFY’s existing organic business.
- ICNE Pty Ltd (“ICNE”), is a Cloud and Managed Service Provider (“MSP”), and is HFY’s ‘anchor’ MSP acquisition that enables the Company to offer one complete end to end IT, managed service, cyber and telecommunications solution to the SME market, with significant cross-sell opportunities in to HFY’s existing customer base. ICNE is forecast to contribute $0.6m in normalised EBITDA in FY22, and was acquired on an FY22 EBITDA multiple of 3.3x (50% cash / 50% scrip).
- Sennah Pty Ltd (“Smile” Telemarketing) will provide the Company with enhanced data of over 75,000 businesses across Australia, playing a lead role in driving organic growth across all product lines, along with contributing new IP and technology to further improve HFY’s current customer engagement model. Smile is forecast to contribute $0.5m EBITDA (post synergies) in FY22, and was acquired on an FY22 EBITDA multiple of 1.0x (100% earnout based – 50% cash, 50% scrip).
Together, the acquisitions are expected to contribute ~$1.1m in EBITDA in FY22 post synergies, and the Company looks forward to driving additional growth through new cross-sell opportunities that arise from acquiring both businesses.