Australia: Smartgroup Acquires Autopia for $36 Million

Smartgroup Corporation Autopia

Australia’s Smartgroup Corporation has announced that it has entered into an agreement to acquire 100% of Autopia, a Sydney-based company that provides novated leasing to a corporate client base for $36 million.

The acquisition represents an implied EV/FY2016 EBITDA of approximately 6.5×1 and is estimated to result in approximately 7% EPS accretion in CY2016 on a pro-forma NPATA basis.

The acquisition is funded by new debt facilities, existing cash reserves, and $250,000 of Smartgroup shares to be issued to management shareholders of Autopia.

Smartgroup completed the transaction Monday, and accordingly, ownership of Autopia is effective immediately.

Autopia is expected to contribute approximately $2.6 million EBITDA and approximately $1.2 million NPATA in 2H CY2016 under Smartgroup ownership including the one-off before tax impact of approximately $0.2 million of integration costs.

“Autopia is a well-managed business and expands our novated leasing capabilities into an adjacent segment. We look forward to working with the Autopia team to leverage our respective strengths,” Smartgroup CEO Deven Billimoria said.

For his part, David Wakeley, CEO of Autopia said his company is looking forward to working with the Smartgroup team to continue to deliver excellent results for customers.

“There is a strong cultural fit between Autopia and Smartgroup and we are excited to be joining Smartgroup,” Wakeley said. –