The acquisition will contribute $2.6m in revenue and $0.87m EBITDA on an annualised basis based on year to date FY20 results and will be highly earnings accretive for HFY.
The business will be acquired for $3m, implying a 3.4x EBITDA acquisition multiple, and will be funded by an up-front cash payment of $1.7m and a 2-year deferred payment comprising 50% cash and 50% HFY scrip.
Connected Intelligence is an established Managed Services Provider with presence in Sydney, Melbourne, and Brisbane.
Hubify Limited CEO Victor Tsaccounis said: “I’m really excited about this acquisition and welcoming the Connected Intelligence customers and staff over the coming weeks.
Connected is a high-quality recurring revenue business with good margins and long-term customers, which is why it’s a great fit for Hubify.
This latest addition to Hubify further enables the company to execute on its growth strategy in enterprise managed services and supports our growing pipeline of prospects in this space.
Positively also, organic growth in the core HFY business remains strong and we continue to work through our acquisition pipeline, and I look forward to updating the market as we continue to close out that pipeline.”