- Swift Media (SW1) has entered a share sale agreement with fellow ASX-lister Motio (MXO) to sell its health and wellness business, Medical Channel
- Motio is a media software company looking to expand its digital media presence and specialise in health and wellbeing
- It will issue Swift with up to 30 million shares through two tranches, with the second tranche being subject to shareholder approval
- In the case that shareholders don’t approve, Motio will pay Swift 20 million in shares and $1 million in cash
- This sale is an important step for Swift to focus on the mining and resources, and aged-care sectors
- However, once the sale is completed, Swift will retain a 12.85 per cent stake in Motio’s issued capital — allowing shareholders to benefit from its growth
- Swift Media is up 10.7 per cent and shares are trading at 3.1 cents
- Motio’s shares are also in the green, trading 9.52 per cent higher at 11.5 cents
Swift Media (SW1) has entered a share sale agreement with fellow ASX-lister Motio (MXO) to sell its health and wellness business, Medical Channel.
Motio is a media software company and the acquisition aligns with its strategy of expanding into the digital intelligence media sector, specialising in health and wellbeing.
Snapping up Swift’s business is set to position Motio as a leader in the Australian digital healthcare space.
“The addition of Medical Channel to our already significant portfolio will drive stronger, brand-safe, content-enhanced environments underpinned by technology and data,” Motio Chief Operating Officer Michael Johnstone said.
In return, Motio will issue Swift 30 million ordinary shares, with the first 20 million to be issued as soon at the deal is completed.
The remaining 10 million Motio shares will be issued subject to shareholder approval which will be sought within 60 business days of completion. If shareholders don’t approve this, Motio will pay Swift $1 million in cash within five business days of the shareholder meeting.
Swift considers the sale to be an “important step” in its strategy of focussing on the mining and resources, and aged-care sectors, and the value of the sale provides it with the resources to do so.
“We are excited by the combination of Swift’s health and wellbeing assets with Motio. The enlarged business has a clear growth strategy, singular focus and the ability to deliver value across one of Australia’s premium place-based media assets,” Swift CEO Pippa Leary said.
Once the sale is completed, Swift Media will own 12.85 per cent of Motio’s issued capital.
“The retained equity stake in Motio will enable Swift’s shareholders to benefit from synergies and growth,” Pippa added.
The transaction is expected to be finalised on April 1, 2021.
Swift Media is up 10.7 per cent and shares are trading at 3.1 cents at 12:35 pm AEDT.
Motio’s shares are also in the green, trading 9.52 per cent higher at 11.5 cents at 12:28 pm AEDT.