- Enero (EGG) acquires two businesses which will be integrated with its Hotwire consultancy group to advance its growth strategy
- Enero acquired US-based sales and marketing agency ROI DNA for an upfront consideration of US$33 million made up of cash and shares
- The company also acquired Singapore-based GetIT for S$4.5 million in cash and shares with both acquisitions to be funded by a new $50 million bank facility with Westpac
- Enero says combining Hotwire’s communication skills with ROI DNA and GetIT’s capabilities will deliver a unique client offering and ongoing delivery of earnings
- Company shares are down 1.72 per cent to trade at $2.85 at 3:41 pm AEST
Enero (EGG) has acquired two businesses as part of its growth strategy and focus on creating a global portfolio of brands and services.
The ASX listed company acquired business-to-business (B2B) marketing agencies, ROI DNA and GetIT, who’ll become part of Enero’s Hotwire Group consultancy brand.
ROI DNA
Established in 2009, ROI DNA is a US-based B2B sales and marketing agency that provides services such as various strategies, paid media planning and management, and SEO and content services, to the tech sector.
It supports a roster of tech clients that is complementary to the Hotwire business and, together, the companies will give clients access to an integrated B2B tech offering.
Enero will acquire ROI DNA for US$26.4 million (A$38.4 million) in cash and US$6.6 million worth of shares.
There may be additional deferred payments subject to financial outcomes over the next three years.
Under the acquisition, ROI DNA’s entire leadership team will remain with the company and work alongside Hotwire.
CEO of ROI DNA Matt Quirie said he’s thrilled to join forces with Hotwire.
“We started ROI DNA to drive ginormous results for our clients and to create a differentiated culture that asks each person to bring their whole selves, think outside the box, do it right, and have a hell of a lot of fun doing it,” Mr Quirie said.
GetIT
GetIT is a Singapore-based B2B tech marketing business that provides telecom, IT and tech marketers with advisory services, and marketing products and programs.
Importantly, this acquisition will launch Hotwire’s owned office network across Asia with a portfolio of high-tech brands such as Google Cloud, Fujitsu, Cisco, and AWS.
Enero will purchase GetIT for S$2.7 million (A$2.84 million) in cash and S$1.8 million in shares, and like ROI DNA, there may be additional deferred payments subject to financial outcomes.
Both acquisitions will be funded by a new $50 million, three-year bank facility with Westpac (WBC).
“Combining Hotwire’s world class communication skills with ROI DNA and GetIT’s performance marketing capabilities will deliver a unique and differentiated client offering, ongoing delivery of quality earnings and revenue synergies, accelerating Enero’s growth trajectory,” Enero CEO Brent Scrimshaw said.
The ROI DNA acquisition is complete while the GetIT acquisition is subject to an Accounting and Corporate Regulatory Authority share ownership registry update in Singapore, which is expected to be completed today.
Company shares were down 1.72 per cent to trade at $2.85 at 3:41 pm AEST.