Smartgroup Corp buys AccessPay Group for $15M

Company News

by Jessica Amir

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.

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.