MotorCycle (ASX:MTO) to acquire Mojo Group for $60m

• MotorCycle (MTO) will acquire 100 per cent of the shares in Mojo Motorcycles and Mojo Electric Vehicles, together the Mojo Group, for $60 million
• Operating in Australia and New Zealand, Mojo Group is a motorcycle, scooter, ATV, electric motorcycle and genuine spare parts and accessories importer
• The acquisition price comprises nearly 11.54 million MotorCycle shares, $20 million in cash and a deferred consideration of up to $10 million
• Today’s deal is subject to shareholder approval and to MotorCycle obtaining key contract and third-party consent
• Shares in MotorCycle are up 14.8 per cent on the market and are trading at $2.48 at 3:52 pm AEST

MotorCycle (MTO) will acquire 100 per cent of the shares in Mojo Motorcycles and Mojo Electric Vehicles, together the Mojo Group, for $60 million.

Operating in Australia and New Zealand, Mojo Group is a motorcycle, scooter, ATV, electric motorcycle and genuine spare parts and accessories importer.

As part of the deal, Michael Poynton and Joshua Carter from Mojo Group will take on senior executive positions within MotorCycle, with Mr Poynton to also join the company’s board.

The $60 million acquisition price comprises nearly 11.54 million MotorCycle shares, which are escrowed for two years, $20 million in cash, and a deferred consideration of up to $10 million.

MotorCycle will fund the cash portion through an increase to its debt facility.

The acquisition is subject to shareholder approval and MotorCycle obtaining key contract and third-party consent.

“We believe the acquisition of the Mojo Group will present significant growth opportunities by introducing the importation and distribution of motorcycles, ATVs, and scooters (including electric models) into our existing product offering, increasing our warehouse capacity and expanding our distribution network,” MotorCycle Found and Managing Director David Ahmet said.

“In addition, MTO continues to explore other motorcycle franchise acquisition opportunities to increase its market share and geographic coverage in Australia.”

Shares in MotorCycle were up 14.8 per cent on the market and are trading at $2.48 at 3:52 pm AEST.