- Infomedia’s (IFM) subsidiary, IFM Americas, has entered into agreements to acquire U.S.-based eCommerce platform SimplePart
- Infomedia will acquire 100 per cent of SimplePart for U.S. $24.5 million (around A$31.6 million) funded from IFM’s cash reserves, plus an earn out of up to U.S.$20.5 million (roughly A$26.4 million)
- The acquisition is subject to satisfying customary closing conditions, with the transaction expected to be met by June 30, 2021
- Infomedia says it will continue to assess further acquisition targets with a focus on assets that enhance its core platform offerings and increase its reach in key geographic markets
- Informedia shares are up 5.4 per cent, trading at $1.66
Infomedia’s (IFM) subsidiary, IFM Americas, has entered into an agreement to acquire U.S.-based e-commerce platform SimplePart.
SimplePart designs, implements and manages eCommerce programs in America and Canada for automakers, helping companies increase their sales of genuine automaker parts, accessories and service through branded websites, online stores and digital marketing support.
The platform can also catalogue complex automaker data and provide extensive reporting and insights to increase aftersales revenue.
Infomedia will acquire 100 per cent of SimplePart for U.S. $24.5 million (around A$31.6 million) funded from IFM’s cash reserves, plus an earn out of up to U.S. $20.5 million (roughly A$26.4 million), which will be calculated based on SimplePart’s EBIT over three years and paid in three annual instalments.
The transaction is expected to be earnings per share accretive from the first full year of acquisition on a pro forma basis.
The acquisition is subject to satisfying customary closing conditions, with the transaction expected to be met by June 30, 2021.
SimplePart founder, Cole Getzler, together with its President, Michael Oki, will continue to run the business from its base in Atlanta, Georgia.
“This transaction is a unique opportunity for SimplePart to partner with a global leader in parts and service software that shares our philosophy of developing and delivering innovative, industry-leading fixed operation solutions,” said SimplePart founder Cole Getzler.
Infomedia says it will continue to assess further acquisition targets with a focus on assets that enhance its core platform offerings, extend its capabilities, open access to new customers and increase its reach in key geographic markets.
Informedia shares are up 5.4 per cent, trading at $1.66 at 2:15 pm AEST.