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Workforce and Staffing company- People Infrastructure (ASX:PPE) acquires the Melbourne based, Victorian Nurse Specialists (VSN) for $2.5 million. VSN was established in 2000 and is a leading nursing agency specialising in supplying general, critical care, mental health, midwifery, and aged care nurses to private and public healthcare clients across Victoria.
The company in its public announcement today stated that the acquisition price of $2.5 million for VSN is payable on a cash and debt free-basis. The acquisition is expected to complete today,1 March 2019 and the current senior management team will remain with the company post the acquisition. PPE believes that deal is earnings accretive for 2019.
People Infrastructureâs Managing Director, Mr Declan Sherman sees the Victorian Nurse Specialists acquisition as a logical expansion of PPEâs healthcare business. He believes that this acquisition will help PPE to further grow its healthcare offering in Victoria and unfold multiple synergies with PPEâs existing Health and Social Care business. Elaborating further on the synergy, the MD stated that there are a number of cross-selling benefits in the form of providing nurses to their disability sector clients and leverage the combined workforce in the nursing and disability sectors to service the entire sector. Mr Sherman believes that PPE and VSN are an excellent strategic fit.
People Infrastructure today also announced that it had acquired the remaining outstanding shares in the existing IT business Recon Solutions and Project Partners, the Recon Group, for $2.8 million. PPE made its first investment in Recon group in January 2018.
Recon solutions is a market leader in IT recruitment in Queensland and Project Partners is a technology and consulting firm.
Mr Sherman highlighted that they are buying the remaining shares in Recon group and increase the stake to 100%. He also stated that this decision was made considering that both Recon Solutions and Project Partners have performed very well since the company made its initial investment in January 2018. The MD also mentioned that the current senior management team of Recon solutions would continue in their current roles post-acquisition. Project Partners continues to be led by its CEO Chris Young, and Drummond South joined the Project Partners team as a Senior Partners. Drummond has over 18 years of experience and worked at SMS Management as a senior member of the executive team and oversaw revenue of $250 million.
The PPE management believes that both the acquisitions are expected to be EPS accretive in FY19 and both the acquisitions are expected to contribute $1.1 million in incremental EBITDA over the next 12 months.
Stock Information
The shares of PPE are trading down 1.98% on ASX, (as at Fri 01 Mar 19, 02:55 PM) and shares have appreciated by 35.85 percent over the past one month. The YTD return generated by stock stands at 44% as on 28 February 2019.
People Infrastructureâs (ASX:PPE) market capitalization stands at $163.57 million. The Stock has noted the 52-week low price of A$ 2.390 and the 52-week high price of A$2.700. The company has a PE of 18.69x and EPS of 0.135 AUD.
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