Smartgroup Corporation Limited (ASX:SIQ) has announced it has purchased a salary packaging firm, the AccessPay Group for $15 million.
The employee benefit and salary packaging company, Smartgroup says AccessPay has a similar salary packaging offering and client base.
After settlement, Smartgroup will hold more than 260,000 outsourced salary packages under management.
The purchase will be funded through existing cash reserves and shares, while Smartgroup will also incur a $2 million one-off expense.
For 2017, AccessPay will contribute $500,000 to EBITDA. For 2018 it will contribute about $4 million to EBITDA and $2.5 million to NPATA.
Shares in Smartgroup Corporation Limited (ASX:SIQ) last traded 1.09% higher at $6.49.