Highlights
- G8 Education has entered into an agreement to acquire Leor Pty Ltd for an upfront cash consideration of AU$2 million.
- G8 Education looks at this acquisition as a real growth opportunity in the in-home and specialist care markets.
- Shares of the stock GEM declined by over 2% to trade at AU$1.025 at 1.30 PM AEST.
ASX-listed G8 Education Limited (ASX:GEM) announced today that it has entered into an agreement to acquire Leor Pty Ltd, a small but rapidly growing provider of in-home childcare and NDIS services for an upfront cash consideration of AU$2 million. The total potential consideration payable is AU$9.5 million and is contingent upon earnings targets being achieved over three years from CY22 through to CY24.
G8 Education Limited is a leading provider of quality care and education services in Australia.
The acquisition will be financed from the Company’s existing cash reserves.
Leor is expected to be self-funding following a modest initial investment in capability and is expected to have a neutral impact on the Group’s CY22 earnings.
About Leor
Leor is an approved In-Home Care provider under the Commonwealth Government’s Child Care Subsidy scheme. Leor is also a registered NDIS provider, with approval to deliver a broad range of services, including early specialist intervention and allied health supports to children across Australia. Leor is the only certified B Corporation in the early learning sector in Australia, which is a third-party verification of its ethical business practices.
Bottom Line:
This offering will deepen and extend G8 Education’s support for families with complex needs by providing flexible, high-quality care in a personalised “family home” environment. Nonetheless, G8 Education views this acquisition as a significant growth opportunity over the medium to long term, particularly as businesses and families adapt to an evolving COVID-19 environment.
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