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Highlights
- IPD shares surged over 5% today following the completion of an assets acquisition.
- The Group funded the transaction with its operating cash flow.
- The stock has gained over 51% over the past 12 months.
The shares of ASX listed IPD Group Limited (ASX:IPG) are rising today following the completion of an assets acquisition.
The scrip traded 5.590% at AU$1.700 per share at 11:33 AM AEDT.
As per the release, the company announced that it has completed the acquisition of the assets of Perth based turn-key energy management and EV solutions provider - Gemtek Group Pty Ltd.
Gemtek’s assets include its business name, domain name, customer list, open customer quotes of approximately AU$14.3 million, jobs in progress, and intellectual property owned by Gemtek in the EV charger market.
About Gemtek
Gemtek has over 15 years of design, project management and infrastructure maintenance experience.
The Development WA, Public Transport Authority of Western Australia (PTA), WALGA members and the major utility providers to WA are some of Gemtek’s partners and customers.
In FY21, Gemtek achieved AU$1.3m of revenues and breakeven earnings.
Related read - IPD Group (ASX:IPG) reports 54% increase in revenue in H1FY22
More details on the acquisition
Image source: © Airdone | Megapixl.com
IPD will get a complete, end-to-end solution in the fast-growing electric vehicle (“EV”) charger market with this acquisition.
Further, IPD revealed that it has fully paid the acquisition price at the completion date – 4 April 2022. It has funded the purchase price from its operating cash flow.
The acquisition price was less than AU$500,000 with no additional earn-out.
IPD can provide a complete, end-to-end solution to EV charger customers. This will include design, hardware, electrical infrastructure, installation, network management and maintenance solutions.
With this acquisition, IPD will have an established customer relationship and an existing order book.
Moreover, it provides a significant pipeline of opportunities to IPD.
The Group further revealed that Gemtek’s four key employees have also joined IPD as part of the long-term employment contracts transaction.
Meanwhile, it is also important to note that this acquisition doesn’t impact IPD’s previously published earnings guidance.
IPD Group share price movement
Image Source © 2022 Kalkine Media ®
The scrip has gained over 51% over the last 12 months and has delivered 46% return to its shareholders. During the previous three months, it has gained 45%.
