SYDNEY, AUSTRALIA: APM Human Services International Limited announce the completion of the acquisitions of Early Start Australia, MyIntegra and Mobility as outlined in the Company’s IPO Prospectus.
The acquisitions involve upfront consideration of $101.5 million through a combination of cash payments and the issue of shares.
An earn-out payment will be payable contingent upon the underlying business meeting EBITDA hurdles over financial years ending 30 June 2023, 2024 and 2025.
The acquisition of Early Start extends APM’s Health and Wellbeing capability to the infant, early childhood and youth sectors, while the acquisitions of MyIntegra and Mobility significantly expand APM’s offering across the Disability and Aged Care Support Services sectors in Australia.
The acquisitions increase the Company’s exposure to the National Disability Insurance Scheme (“NDIS”).
MyIntegra is benefiting from rising adoption of plan management amongst NDIS participants, which has increased from 30% to 49% over the past 2 years.
The NDIS has committed funding of $31.9 billion by FY25 (FY21: $23.2 billion). Mobility is similarly well positioned in the aged care home support and home care sector, where funding is projected to increase to $10.9 billion by FY23 (FY20: $6.4 billion).
The company also announced the acquisition of Clustera AB for completion on 31 January 2022.
The acquisition of Clustera, one of Sweden’s leading Providers, facilitates APM’s market entry into Swedish Employment Services, where the government is moving from a deliverer of services to a market steward role, with a market reform program planned from late 2022.
With offices in 38 locations throughout Sweden, Clustera is a licensed Swedish Public Employment Services (‘SPES’) provider under the Equip and Match (‘KROM’) pilot program.
Under KROM, Clustera provides intensive and adapted support for clients looking for a job or further education.
The KROM program is based on jobseeker choice and control, with an increased focus on client outcomes supported by Providers.
The previous Support and Matching (‘STOM’) program is being progressively phased out. Clustera also provides staffing and recruitment services in select locations.
Clustera is expected to generate adjusted financial year 2022 EBITDA of SEK 12m (approximately A$2m) and the acquisition provides APM with a platform for long term growth in Sweden.
With the support of APM, it is planned that Clustera will enter new regions and expand its market presence across Sweden
APM CEO Michael Anghie said: “It is with great pleasure that I welcome the teams at Early Start Australia, MyIntegra and Mobility to APM, these businesses expand our service offering and capability across the Health and Wellbeing sector and further into the provision of Disability and Aged Care Support, in Australia.
I also look forward to providing a warm reception to the Clustera team next month, as we enter the Swedish Employment Services Market.”
“Our entry into early intervention and therapy services for children and youth through Early Start Australia is a natural extension of APM’s existing Health and Wellbeing business, where we have historically serviced the adult market.
Early Start’s talented and dedicated team of 500 allied health professionals and national network of 45 clinics provides APM with a strong base from which to grow in this important segment.”
“Disability and Aged Care Support Services provides APM with significant opportunities for future growth in a fragmented market through leveraging the Company’s foundations in allied health and rehabilitation and our presence in and understanding of local markets across Australia.”
“International growth is a core part of our strategy, and with market reform underway in Sweden expected to drive structural growth and market consolidation, it is the right time to enter this exciting market.
Clustera is a high performing company with aligned values and purpose providing us with a platform from which to replicate a performance-based service delivery model which is well understood by APM.”
“With completion of the IPO Acquisitions consistent with the timing outlined in our IPO Prospectus, I am pleased to reaffirm that APM is on track to deliver on its FY22 Prospectus forecasts and note that the financial contribution of Clustera will be incremental to Prospectus forecasts.”
