MSL Solutions Continues to Strengthen Market Position with Acquisition of Pricap Services Pty Ltd
Friday, 27 April 2018: MSL Solutions Limited (ASX: MPW) (MSL or the Company) is pleased to announce its acquisition of Pricap Services Pty Ltd (Pricap).
- MSL will acquire 100% of the shares in Pricap;
- Acquisition will enhance market share and deliver strong cross-selling opportunities
for both the MSL and Pricap existing customers;
- Pricap’s unique business model will extend MSL’s reach into the golf sector and other
key enterprises across sport, leisure and hospitality venues;
- Long-term value for MSL shareholders to be created from customer, technology and
Following a detailed due diligence process and approval from the Board of Directors, MSL Solutions is pleased to announce it has entered into a Share Sale Agreement to acquire 100% of the shares in Pricap Services Pty Ltd. The proposed completion date for the acquisition is 1st May 2018.
MSL has acquired Pricap for $2.05 million, with an additional $0.45 million payable upon meeting performance hurdles. The initial acquisition price is cash funded, and the performance payment is a combination of cash (being $0.34 million) and fully paid ordinary shares (being $0.11 million). The company currently generates $0.85 million in gross revenue with an annualised EBITDA of $0.4 million.
Mr Craig Kinross, CEO and Managing Director of MSL said: “This exciting acquisition remains consistent with our strategy to increase our market share, enhancing club solutions and their member services. We will realise the combined value of these two companies as we continue to support sustainable growth by fortifying our market leading position with great products and great people. The Pricap team have a unique business model that allows them to deliver software solutions to small venues at a low cost, whilst also assisting with key membership services, that provide considerable financial benefit to the venue, and convenience to their members.”
Pricap currently provides its solutions to more than 125 venues in the Sports, Leisure and Hospitality market, mostly in the Australian golf sector. The flagship solution, Slice, is a fully-integrated platform which allows venues to manage their key operational functions, including membership, golf, gyms, POS, online timesheets, card scanning, leader boards and subscription payments.
The integration of the Slice solution with the MPower MSL platform will open up considerable cross selling opportunities to both Pricap and MSL customers further enhancing service, advice and support. The combination will also deliver valuable efficiencies and cost savings for customers.
For further information, please contact:
Investor and Media enquiries
MSL Solutions Limited
Phone: +61 438 008 383