Infomedia (ASX:IFM) acquires SimplePart; what it means for software provider

Summary

  • Infomedia Ltd (ASX:IFM) announced completion of the acquisition of US-based e-commerce platform SimplePart.
  • The software provider said that the acquisition was not expected to have much impact on its financial results for the 12 months ending 30 June 2021.
  • The company also anticipated final revenue in the range of AU$95 million to AI$96 million.

Infomedia Ltd (ASX:IFM) on Tuesday announced completion of the acquisition of SimplePart. The software provider also said that the acquisition of US-based e-commerce platform was not expected to have much impact on its financial results for the 12 months ending 30 June 2021.

Infomedia said that the organic growth in its core parts and service SaaS platform had picked up since December, particularly in the current quarter. The company anticipated final revenue in the range of AU$95 million to AI$96 million. The cash earnings before interest, tax, depreciation and ammortisation (EBITDA) would be between AU$19 million and AU$20 million for FY21.

Source: © Ptlee  | Megapixl.com

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What company says

Commenting on the development, Infomedia’s chief executive Jonathan Rubinsztein said that company’s respective teams have started to engage and identify opportunities to leverage existing relationships in the US and elsewhere.

The acquisition uniquely positioned the company to offer its customers an expanded range of market leading business-to-business and business-to-consumer parts, service, and data insights solutions, he noted.

The company said that growth in organic monthly recurring revenue, combined with the inclusion of SimplePart revenue, provided strong momentum leading into FY22.

Source: ©Miflippo  | Megapixl.com

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Stock performance

On Monday, 31 May 2021, the shares of Infomedia closed at AU$1.36, down 1.81%, as against the previous closing on Friday, 28 May 2021. Infomedia competes with Afterpay (ASX:APT), Xero (ASX:XRO), Computershare (ASX:CPU), among others in the tech sector.

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