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- Technology equipment distributor Ambertech (AMO) is set to purchase electronics distribution business, Convoy International, for up to $3 million
- The acquisition is anticipated to come with a price tag of between $2.8 and $3 million in net cash, including goodwill of around $500,000
- Founded in 1965, Convoy has supplied electronic equipment across Australia for over 55 years and currently stocks brands such as Bluesound, NAD Electronics and JBL Synthesis
- The acquisition will be funded through existing cash reserves and is expected to go ahead around January 31, 2023
- AMO shares were up 6.35 per cent, trading at 33.5 cents at 12:30 pm AEDT
Technology equipment distributor Ambertech (AMO) is set to purchase electronics distribution business, Convoy International, for up to $3 million.
Ambertech will pay a cash consideration of between $2.8 and $3 million for the Australian business, which started in 1965 and currently supplies electronic equipment across the country to brands such as Bluesound, NAD Electronics and JBL Synthesis.
The price tag is inclusive of inventory and accounts receivables, business use assets and goodwill valued around $500,000, subject to final assessment.
The acquisition comes after Convoy’s founder and CEO, Goeff Matthews, passed away in March, 2019.
Ambertech estimates revenue growth through the acquisition to be around $4 to $5 million annually, with “ongoing growth potential.”
The acquisition will be funded through existing cash reserves, and is expected to go ahead around January 31, 2023.
Ambertech Managing Director Peter Amos said he was “pleased” to be adding Convoy’s “prestigious” brands to Ambertech’s portfolio.
“These brands allow Ambertech to expand our solutions for residential installers and specialist HiFi dealers and consolidates our position as the supplier of choice to these markets.ā
Chief Operating Officer Robert Glasson said they will now work to integrate Convoy into Ambertech.
“We have established a strong set of acquisition criteria as a fundamental element of our growth strategy, and Convoy is a business that we have been following for many years.
“Identifying premium brands, strategic relationships and quality people remains key.”
AMO shares were up 6.35 per cent, trading at 33.5 cents at 12:30 pm AEDT.
