Mobile payments and marketing company, Mobile Embrace Limited, has acquired mobile performance marketing business, The Performance Factory.
The acquisition of The Performance Factory is both complimentary and expansive to Mobile Embrace’s 4th Screen Advertising Australia m-marketing business as well as deepening the resources and leverage of the Company’s media trading desk in its m-payments business, Convey.
The Performance Factory has been acquired by Mobile Embrace for a total consideration of $3.2 million plus potential contingent consideration of up to a further $4 million (total potential consideration of $7.2 million) over two years and subject to profit before tax targets through to 2017. The Performance Factory is on target for FY2015 revenue of $5 million, $1 million EBIT and $1 million NPBT.
Mobile Embrace has also announced that The Performance Factory’s CEO, Mr Andrew Kilday, will be joining the company continuing on a three year performance contract aligning himself with Mobile Embrace’s strategic growth plan.
Speaking about the benefits of the acquisition to Mobile Embrace, the company’s chief executive officer, Chris Thorpe, said: “The acquisition delivers on the company’s decision to go to the market earlier this year and raise sufficient funds to be able to strategically grow and deepen its business and profitability in its payment and advertising business as highly beneficial strategic opportunities such as this arise.
“We are delighted to welcome The Performance Factory and Mr Andrew Kilday to Mobile Embrace. It is rewarding to engage with a similarly minded, growing and profitable business that has a compatible culture, compliments Mobile Embrace’s organic growth, and which is also complimentary to our m-payments and m-marketing businesses.
“In addition to meeting our disciplined strategic acquisition criteria and rigorous due diligence process, our patience has been rewarded with a culturally and strategically compelling business which will be immediately earnings accretive on all measures. Aside from the immediate positive impact on earnings, The Performance Factory boosts our capabilities, scale and customer base and positions us in strong compatible business sectors with leveraging opportunities across the business.”
The acquisition of The Performance Factory is EPS accretive (post acquisition costs but before synergies) as measured compared to statutory 2014 earnings EPS adjusting for any changes to issued capital since 30 June 2014 and for the issuance of a further 4 million shares at 25cents each*
* EPS accretion percentages are relative to historical 2014 EPS adjusted for and changes to issued capital since 30 June 2014 and for new share issuances contemplated in this transaction but DO NOT have regard or project analyst consensus estimated EPS for FY15