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- Diverger (DVR) has agreed to acquire technology services company Priority Networking (PNET)
- The $2.25 million deal solidifies DVR’s position as a market-leading provider of support services to advice and accounting businesses
- PNET’s service model and proven track record will aid Diverger’s existing network network of 3500 businesses
- The deal supports Diverger’s aims to deliver on its FY2025 growth targets
- Company shares have ended the day up 6.32 per cent to close at $1.01 each
Diverger (DVR) has completed the acquisition of technology services company Priority Networking (PNET), strengthening its position as a market-leading provider of support services to advice and accounting businesses.
The $2.25 million acquisition is funded by Diverger’s existing debt facility, with 80 per cent ($1.8 million) settled on completion of the deal, and the remaining 20 per cent settled after 12 months, subject to PNET achieving performance targets.
An earn-out incentive of up to $450,000 is also included in the deal, payable subject to the company meeting an agreed uplift in earnings in the second year.
Priority Networking has offered technology support services to around 130 businesses for more than 10 years.
Diverger said Priority’s expertise and service model will help support its existing network of 3500 advice and accounting businesses.
The deal also supports the company’s growth trajectory towards its FY2025 growth targets, further signalling Diverger is on track to achieve those targets.
Furthermore, Diverger said the acquisition will be earnings accretive in FY23.
Priority Networking’s Managing Director, Greg Gardner, and Founder Jacques Louw will continue with the business and be supported by Diverger’s team in servicing the existing client base and growing the business.
Company shares were up 6.32 per cent to close at $1.01 each.
