The Citadel Group Limited Provides Release Of Voluntary Escrow Restriction

The company advises that 2,714 fully paid ordinary shares currently held under voluntary escrow are being released on 18 January 2019. To divest the Gruden government business to Jakeman Business Solutions Pty Limited ACN 101 963 240 which is a wholly-owned subsidiary of the Citadel Group Limited IncentiaPay Limited announced to the market on 3 December 2018 of its entry into a binding agreement. By way of the sale of all the shares in Gruden Pty Ltd, IncentiaPay is pleased to confirm it has completed the divestment of the government business on the terms previously disclosed. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

IncenitaPay recently confirmed the acquisition of the government business of Gruden Pty Ltd, and it has been completed further to the announcement on 03 December 2018. The Gruden’s government business as noted previously currently supports the following software asset and technology as Federal Government – 1) Austender eProcurement Platform and Grants Management systems and Managed Services Infrastructure 2) Records Management and Managed Services Infrastructure from Victorian Government 3) eProcurement Platform from New South Wales Government.

To divest the Gruden government business to Jakeman Business Solutions Pty Limited, the sale agreement between them is structured as a share sale of all the shares in Gruden Pty Ltd ACN 602 396 654. Including the Performance Marketing, Enterprise Software, and MobileDen business units will be retained by IncentiaPay and any assets not related to the government business. With 75% payable on completion and the balance paid subject to a working capital adjustment the government business will be sold for a total consideration of $1.65m in cash. At the IncentiaPay AGM on the 19th of November 2018, the company’s intention to divest the asset was disclosed to the market and is in line with previously stated company strategy to focus on longer-term growth opportunities and divest its non-core operations.

As the company continue to perform on their strategy of managing information in complex environments, the acquisition of Gruden provides Citadel with panel arrangements that they will leverage into new areas of private industry and government and valuable new SaaS platform capabilities. Citadel’s available cash has been used to fund the transactions and will be immediately earnings accretive.

The Citadel Group Limited (ASX: CGL) traded lower by 0.414% at the market price of $7.210. Over the 12 months, the stock has seen a performance change of 13.30%, and the current market capitalization of the stock is at $356.64 million. The stock has a P/E of 19.650 and EPS of 0.368 AUD, and the annual dividend yield of the stock is 1.91%.


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