MELBOURNE: Connexion Mobility Ltd has entered into a definitive agreement to acquire Hallam Road Automotive, a Melbourne-based service and repair center, for total potential consideration of approximately 5 million Australian dollars (US$3.5 million).
The acquisition is expected to be immediately accretive to Connexion’s earnings per share by an estimated 25% to 35%, the company said. The deal includes an upfront cash payment of A$4 million (US$2.8 million) and a performance-based earn-out of up to A$1 million (US$700,000) payable over 12 months.
Connexion, a publicly traded mobility software company serving the global automotive retail industry, said the transaction would improve the sustainability and diversification of its earnings while significantly reducing its operational exposure to foreign exchange risk between the Australian and U.S. dollars.
“Hallam Road Automotive is a high-performing operation in a growing and resilient industry whose risk profile complements Connexion’s,” CEO Aaryn Nania said in a statement. “The teams at both companies share a passion for improving customer experiences surrounding automotive service and repair.”
The acquisition will be funded from Connexion’s existing resources and a new A$2.5 million (US$1.75 million) amortizing debt facility with National Australia Bank.
Hallam Road Automotive founder Elie Chakkour has committed to a 12-month paid handover consultancy to ensure a smooth transition. “I look forward to working closely with Connexion over the coming year,” Chakkour said.
The target company operates a nine-bay facility in Melbourne’s southeast and serves a client base split roughly 60% commercial and 40% retail. It has demonstrated strong Australian dollar earnings over many years, with estimated revenue growth of 15% and net profit before tax growth of 24% from fiscal 2019 through 2027, according to Connexion.
Connexion said it held net cash and investments of US$5.6 million at the end of March 2026. The company noted that a sharp reversal in the favorable AUD/USD trend could materially affect operating earnings, adding that the Australian dollar has risen about 15% against the U.S. dollar over the past 12 months.
The transaction is structured through a newly incorporated wholly owned subsidiary, Connexion Services Pty Ltd, which will acquire the assets of Hallam Road Automotive and offer employment to all current staff. Completion, expected in May 2026, is subject to third-party consents, property lease execution, and approval under ASX Listing Rules.
Post-acquisition, Connexion said it may pursue selective bolt-on acquisitions of other service and repair businesses and use Hallam Road Automotive as a local test bed for its software.
Connexion Mobility Ltd is listed on the Australian Securities Exchange. Hallam Road Automotive has operated for more than 20 years in Hallam, Victoria.
