Johns Lyng Group (ASX:JLG) - Managing Director and CEO, Scott Didier
Managing Director and CEO, Scott Didier
Source: Scott DIdier/LinkedIn
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  • Johns Lying Group (JLG) agrees to acquire Smoke Alarms Australia and 70 per cent of Linkfire in a combined $61.8 million deal
  • The company will fork out a total upfront cash consideration of $61.8 million plus an aggregate earn-out of up to $17.25 million
  • The combined acquisitions are set to generate FY23 revenue of approximately $44.2 million and an EBITDA of around $9.3 million
  • JLG also announced a placement of $65 million and an SPP raising $5 million to fund the acquisitions
  • JLG shares last traded at $5.43

John Lying Group (JLG) has agreed to acquire Smoke Alarms Australia (SAA) and 70 per cent of Linkfire.

The company will fork out a total upfront cash consideration of $61.8 million, plus an aggregate earn-out of up to $17.25 million.

Through acquiring these companies JLG is expected to generate FY23 revenue of approximately $44.2 million and an EBITDA of approximately $9.3 million.

JLG entered a binding share purchase agreement with SAA to acquire 100 per cent of the company for an upfront cash consideration of $50.1 million.

SAA is a Sydney-based provider of smoke alarm, electrical and gas compliance, testing and maintenance services, the second largest provider in Australia, carrying out around 284,000 projects annually.

As for Linkfire, JLG entered into a binding share purchase agreement to acquire 70 per cent of the company for an upfront cash consideration of $11.7 million.

Linkfire provides fire and essential safety services in Victoria and Newcastle, servicing more than 8500 buildings annually, with a majority of customers consisting of Strata Managers and Owners’ Corporations.

Meanwhile, JLG has also announced a placement of $65 million at $5 a share and a share purchase plan aiming to raise an additional $5 million. These acquisitions will be funded through such equity raising.

JLG shares last traded at $5.43.

JLG by the numbers
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