Digital tithe merchant Pushpay Holdings Group Ltd (ASX: PPH) today announced it'll spend US$87.5 million to acquire rival Church Community Builder using a mix of cash on hand and debt. According to the announcement Church Community provides digital church management systems to over 4,000 U.S. churches.
Pushpay's financial year ends March 31 2020 and it reports the acquisition is expected to be accretive on a pre tax operating cash flow per share basis over the year to March 31 2021. Over the year to March 31 2022 the deal is expected to add "material" accretion to Pushpay's total revenue and EBITDAF.
The company also reiterated the following guidance: "Operating revenue of between US$121.0 million and US$124.0 million, gross margin of over 63%, EBITDAF of between US$23.0 million and US$25.0 million, and total processing volume of between US$4.8 billion and US$5.0 billion."
Pushpay has a shareholder basis as evangelical as the churchgoers it skims fees from, but whether this business model lasts the distance is yet to be seen.
