- Credit Clear’s will buy ARMA Group Holdings.
- The total consideration of the acquisition is worth AU$46 million-plus earnout.
- The strategic acquisition will increase the company’s customer base by 400 active clients.
The ASX-listed software and service company Credit Clear Limited (ASX:CCR) announced that it has agreed to buy 100% of a leading Australian and New Zealand debt collection service provider, ARMA Group Holdings.
The total consideration of the acquisition is worth AU$46 million-plus earnout. CCR will secure the acquisition funding through AU$29.5 million capital raising, which includes a fully underwritten AU$25.5 million two-tranche institutional placement and a share purchase plan to raise AU$4 million share purchase plan.
The strategic acquisition by CCR will increase its customer base by 400 active clients, driving revenue growth by 140% to AU$26.5 million and EBITDA to AU$3.9 million. The acquisition will also give CCR technology sufficient exposure in the Australasian market with the addition of ARMA’s senior sales team and established industry relationships.
Meanwhile, on the ASX, the CCR stock has closed, trading 12.963% lower at AU$0.470 per share today.