The S&P/ASX 200 Index (ASX: XJO) has risen 0.8% in the final day of the quarter to 6,791 points.
These are some of the highlights from the ASX today:
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Zip Co Ltd (ASX: Z1P) wins a big new merchant
Zip announced today that it has entered into a partnership with JB Hi-Fi Limited (ASX: JBH).
If you didn't know, JB Hi-Fi operates both JB Hi-Fi stores and The Good Guys. It's one of Australia's largest technology and entertainment retailers.
Zip will provide its interest-free payments solution for both of JB Hi-Fi's businesses, both in-store and online.
Peter Gray, the co-founder and chief operations officer of Zip, said:
We are delighted to partner with the JB HI-FI Group. We look forward to providing customers with choice at checkout, empowering them to own the way they pay at JB HI-FI and The Good Guys. This strategic partnership provides Zip customers with access to even more of Australia's favourite brands, further delivering on Zip's mission to be the first payment choice everywhere and every day.
Zip is anticipating this partnership will be launched to market in April 2021.
The Zip share price grew by 0.4% today.
Suncorp Group Ltd (ASX: SUN)
Today, Suncorp gave an update on the expected financial impact from the heavy rainfall and flooding across NSW, South East Queensland and Victoria.
The ASX 200 share has received over 7,600 claims across all three states. The insurer is expecting that number to rise as customers gain access to affected regions and the extent of damage becomes clear.
The CEO of Suncorp, Steve Johnston, said:
Suncorp continues to work with our customers, particularly in the hardest-hit areas of the mid-North Coast of NSW and Western Sydney.
Floods too frequently devastate communities across Australia, which is why as a country we must address this risk. Unfortunately, many homes in Richmond, Windsor, Penrith, Port Macquarie and Taree are in medium to very high flood risk areas.
As a country, we need to address how we can protect homes in flood-prone regions through government investment in mitigation infrastructure. We must also improve planning decisions to ensure we are not building new homes in high-risk areas.
Based on claims lodged to date and the group's preliminary assessment of damage, Suncorp estimates net claims costs in relation to this event will be $230 million to $250 million. Suncorp expects the majority of claims to be attributed to a single event across all three states for reinsurance purposes. The costs of this event will be capped at $250 million under the group's main catastrophe program.
Spirit Technology Solutions Ltd (ASX: ST1)
Spirit Technology announced an acquisition today.
It's acquiring Nexgen, which has over 5,500 data and voice business customers with 4,000 being contracted and recurring. The average contract term is 4.5 years with no customer concentration. It also has more than 100 sales team members that will be joining Spirit to sell Nexgen products and cross-sell Spirit's internet, cloud, voice, mobiles and cyber security.
Nexgen is expected to generate $36 million of revenue and is tracking to a forecast of FY21 earnings before interest, tax, depreciation and amortisation (EBITDA) of between $7.2 million to $7.6 million. The implied multiple is 6.5x with the completion payment (including a deferred component of $10 million) capped at $50 million.
Spirit Technology will have over 10,500 business customers after the acquisition.
To fund this, it has successfully conducted a placement to institutional and sophisticated investors raising $23.8 million and its debt facility has been increased by $10 million to $25 million.
