IFM Share Price Hiked After The Acquisition Of Nidasu

Infomedia Ltd (ASX:IFM), which is into a business of providing support to the global automotive industry in terms of parts and service software has made announcement in regards to its acquisition of Australian based, automotive data solutions company Nidasu. Throughout Australia and Asia pacific, Nidasu provides automakers and dealerships with the critical automotive data analytics. As per the business model, the monthly subscription of the business model is matching the Infomedia’s software as a service (SaaS) recurring revenue business. The data analytics and reporting solutions provided by Nidasu is well established. It is also supported by both, the existing customers as well as the new auto makers in the Asia Pacific regions.  As per the company, the acquisition of Nidasu, will help it not only to build Infomedia’s data strategy but also will provide an opportunity to access new customers as well as control Infomedia’s data business globally.

Jonathan Rubinsztein, who is the CEO of Infomedia, states that the acquisition of Nidasu is balancing the core business of Infomedia. By combining solutions, the company will be in a position to offer significantly more value to our customers by supporting them to sell more original parts, provide them with excellent customer support and also retain the customer loyalty automotive manufacturer brand. The co-founder and CEO of Nidasu, O Jonathan Scharrer, expresses his excitement about the Nidasu team joining Infomedia and in regards to the global footprint of Infomedia, its strong customer base and the quality of commercial infrastructure, which will provide a platform for the business to expand. It is expected that this acquisition will gradually increase both the revenue and earnings of the company. In the FY2019, the contribution from this acquisition is expected to be small. From the existing cash of Infomedia, the transaction related to the acquisition will be funded and it is expected that will execute early in the calendar year 2019 based on Infomedia’s outlook for the 2019. There will be no changes in the financial year. The company is hopeful that the step taken by them will benefit them in future. In the upcoming year, it will help not only in terms of increasing the recurring revenue from contracts won in prior periods but also to manage the cost in a disciplined way. The company is going to share the half yearly of FY2018 result on 25 February 2019.

Throughout its journey, the company has shown a positive performance. The performance remained 204.56% since inception. The 1 year, 5 years and 10 years performance of the company is 52.9%, 103.09%, 208.70% respectively. For the period ended FY2018, the net profit after tax of the company is A$12.897 million. The company remains strong in terms of the net current assets worth $11.5 million by 30 June 2018. The company holds no debt by that period. The cash and cash equivalent at the end of the year was $13.3 million.

After the acquisition update, there was seen a hike of 4.219% since November 12^th morning. The current market price of the share is A$1.235 (AEST: 2:16pm). The market capitalization of the company is A$368.78 million and PE ratio 28.49x.

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