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.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
- On a serendipitous day, Tom Richardson is leaving the building – December 17, 2019 11:55am
- Why Aerometrex shares have doubled their IPO price – December 16, 2019 4:32pm
- Why the National Veterinary Care share price is going nuts today – December 16, 2019 3:39pm