Camplify (ASX:CHL) to acquire Mighway and SHAREaCAMPER

Highlights 

  • An agreement between CHL and 'thl' regarding the sale of business and assets of Mighway NZ, SHAREaCAMPER NZ and SHAREaCAMPER AU was reached on 25 October 2021.
  • The transaction will represent up to AU$7.37 million Sale agreement, paid in CHL shares.
  • CHL also announced a strategic expansion with approximately AU$7.37 million paid in shares.

ASX-listed Company which operates as peer-to-peer digital marketplace platforms to connect recreational vehicle (RV) with potential owners, Camplify Holdings Ltd (ASX:CHL) announced on Tuesday that it has entered into an agreement with Tourism Holdings Limited (NZE:thl).

The agreement is regarding the acquisition of Mighway and SHAREaCAMPER business and assets in Australia and New Zealand from thl.

The acquisition represents a sale of approximately AU$7.37 million based on final adjustments in the form of CHL shares.

The announcement revealed:

  • The transaction is likely to complete on 30 November subject to the Confirmation of the migration of the insurance contract from Mighway to Camplify.
  • The shares will be paid in 2 equal tranches of AU$3.685 million, the first on completion and the second in 12 months, following the completion period for provided warranties.
  • The agreement restricts thl from operating a peer to peer RV sharing marketplace in Australia or New Zealand for 5 years.
  • The transaction price is based on a multiple 5.46 of revenue for the combined Covid-19 affected FY21 results.

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According to the announcement, this acquisition also begins a strategic relationship between Tourism Holdings and Camplify. The two companies will work together on servicing more customers and growing the Camplify brand in Australia and New Zealand. A

Today, the stock CHL was up by 10.588% at AU$4.700 per share on ASX at 3:10 PM AEDT. 

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Bottom Line:

The acquisition positions Camplify as the most prominent peer-to-peer marketplace in the New Zealand market as a strategy to service the return of international tourists. It strengthens the Company’s consumer base for future growth and establishes a relationship between RV-industry leaders that will leverage cross-promotional marketing benefits and deliver value-added services to van-owners in New Zealand and Australia.

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