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Car Parking Technologies shares soar 30% on UK retail parking acquisition
The market today has applauded the move by Car Parking Technologies to acquire 100% of Town & City Parking (UK) Limited, with the company's share trading up 30% on the announcement.
Town & City is the UKs largest retail parking company, managing over 1,000 car parks for some of the country's major retailers, and last financial year had a turnover of around A$23 million (15 million).
The maximum consideration payable is A$14.5 million (9.44 million), provided all financial performance benchmarks are met.
Consideration is based on a multiple of 4.4 times maintainable EBITDA, and comprises 50% cash and 50% scrip, to be paid in three tranches over the next 20 months, with the precise timing and amount of payments subject to the financial performance of Town & City during that period.
The current owner of Town & City is Bernie Dickson, who is a nonexecutive board member of Car Parking Technologies.
Chris Morris, chairman of Car Parking Technologies, commented on the move by the company, This is an exciting opportunity for Car Parking Technologies, and transforms the company from a pure technology provider to a company that can offer an end to end solution for managing on and off street parking using its own technology.
"Management of car parks traditionally has been a labour intensive business but by using smart technology staff costs can be reduced significantly.
The acquisition is subject to customary conditions precedent including due diligence and shareholder approval.
The maximum consideration payable is A$14.5 million (9.44 million), provided all financial performance benchmarks are met.
Consideration is based on a multiple of 4.4 times maintainable EBITDA, and comprises 50% cash and 50% scrip, to be paid in three tranches over the next 20 months, with the precise timing and amount of payments subject to the financial performance of Town & City during that period.
The current owner of Town & City is Bernie Dickson, who is a nonexecutive board member of Car Parking Technologies.
Chris Morris, chairman of Car Parking Technologies, commented on the move by the company, This is an exciting opportunity for Car Parking Technologies, and transforms the company from a pure technology provider to a company that can offer an end to end solution for managing on and off street parking using its own technology.
"Management of car parks traditionally has been a labour intensive business but by using smart technology staff costs can be reduced significantly.
The acquisition is subject to customary conditions precedent including due diligence and shareholder approval.
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