Join our daily newsletter At The Bell to receive exclusive market insights
- APM (APM) has announced the completion of the acquisitions of Early Start Australia, MyIntegra and Mobility as outlined in the company’s IPO Prospectus
- The company also announced the acquisition of Clustera AB for completion on January 31, 2022
- The acquisitions involve upfront consideration of $101.5 million through a combination of cash payments and the issue of shares
- The acquisition of Clustera, facilitates the company’s market entry into Swedish employment services
- APM Human Services International shares are up 0.35 per cent to trade at $2.89 at 2:29 pm AEDT
APM Human Services International (APM) has announced 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.
The company also announced the acquisition of Clustera AB for completion on January 31, 2022.
The acquisition of Early Start extends APM’s Health and Wellbeing capability to the infant, early childhood and youth sectors, whilst MyIntegra and Mobility expand APM’s offering across the disability and aged care support services sectors.
The announcement increases the company’s exposure to the National Disability Insurance Scheme (NDIS) with MyIntegra benefitting from the rising adoption of plan management amongst NDIS participants which have risen from 30 per cent to 49 per cent.
Mobility is similarly positioned in the aged care home support and home care sector, where funding is projected to increase to $10.9 billion by FY23, according to APM.
The acquisition of Clustera, facilitates the company’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 for late 2022.
Clustera offers the company a chance to tap into the Swedish market with 38 locations throughout Sweden, providing intensive and adapted support for clients looking for a job or further education.
The company is also a provider under the Equip and Match (KROM) pilot program, which is based on jobseeker control and choice, with an increased focus on client outcomes supported by providers.
Clustera is expected to generate adjusted financial year 2022 earnings before interest, taxes, depreciation and amortization of SEK 12 million (A$2 million), and with the support of APM, is it planned Clustera will enter new regions.
APM CEO, Michael Anghie, said the company looks forward to entering the Swedish 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,” he said.
“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,” Mr Anghie continued.
“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.”
APM Human Services International shares are up 0.35 per cent to trade at $2.89 at 2:29 pm AEDT.
