SYDNEY, AUSTRALIA: Hubify Limited (ASX: HFY) has executed a Business Sale Deed with Connected Intelligence to acquire its Managed Services and Telco Business efficient April 1, 2022.
The acquisition will contribute $2.6m in income and $0.87m EBITDA on an annualised foundation based on year to date FY20 outcomes and can be extremely earnings accretive for HFY.
The enterprise will be acquired for $3m, implying a 3.4x EBITDA acquisition multiple, and can be funded by an up-front money payment of $1.7m and a 2-year deferred payment comprising 50% money and 50% HFY scrip.
Connected Intelligence is a longtime Managed Services Provider with presence in Sydney, Melbourne, and Brisbane.
Hubify Limited CEO Victor Tsaccounis said: “I’m actually enthusiastic about this acquisition and welcoming the Connected Intelligence customers and staff over the approaching weeks.
Connected is a high-quality recurring income enterprise with good margins and long-term customers, which is why it’s a nice match for Hubify.
This newest addition to Hubify additional enables the corporate to execute on its growth technique in enterprise managed services and helps our rising pipeline of prospects on this space.
Positively also, natural growth within the core HFY enterprise stays strong and we proceed to work through our acquisition pipeline, and I look ahead to updating the market as we proceed to shut out that pipeline.”