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PF&LG to purchase majority interest in Asset Finance Brokers
Posted on Friday, 17 February 2017 11:13
Platform Finance & Leasing Group (PF&LG), a subsidiary of Armidale Investment (AIK), has signed on the dotted line to pick up an 80.0 per cent stake in Australian equipment finance agent Asset Finance Brokers for AUD 6.40 million (USD 4.93 million).
The consideration comprises AUD 4.60 million in cash and AUD 1.80 million in stocks.
Completion is expected by 31st March 2017, subject to the usual raft of conditions, including the go ahead from Australian Competition and Consumer Commission.
In addition, PF&LG has an option to acquire the remaining stake in the target.
Asset Finance Brokers posted normalised earnings before interest, tax, depreciation and amortisation (EBITDA) of roughly AUD 2.00 million for the financial year ended 31st December 2016, with the agreed multiple around 4.0 times EBITDA.
AIK is targeting between three and five acquisitions within the next 18 months.
The company bought a 60.0 per cent share of PF&LG for AUD 24.00 million in December 2015, with the option to snap up the remaining interest valid until July 2020.
AIK, which traded as Wallace Absolute Return, listed on the Australian Securities Exchange in 2003.
Last year, the business agreed to purchase a majority stake in Consolidated Finance Group, Linx Finance and QLD Pacific for about AUD 43.10 million in a combination of cash and stocks.
Incorporated in 2015, PF&LG, which was formerly known as Group Platform Finance & Leasing, is an Australian asset-finance aggregator.
According to Zephyr, the M&A database published by Bureau van Dijk, there were 64 deals targeting mortgage and nonmortgage loan brokers announced worldwide in 2016, with the acquisition of US-based American Capital MTGE Management being the largest.
American Capital Agency agreed to pay a cash consideration of USD 562.00 million for the business in July.
Other targets include Arbor Commercial Mortgage, India Infoline Finance and Dominion Lending Centres.
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