The Infomedia Limited (ASX: IFM) share price is on the rise in early morning trade. This comes after the company provided an update on its SimplePart acquisition, and FY21 guidance.
At the time of writing, Infomedia shares are up 8.86% to $1.48.
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Business update and FY21 guidance
Investors are pushing Infomedia shares higher following the company's positive announcement.
According to this morning's release, Infomedia advised it has completed the acquisition of United States-based e-commerce platform, SimplePart.
Infomedia's CEO, Mr Jonathan Rubinsztein commented:
We are delighted to officially welcome SimplePart into the Infomedia family. Our respective teams have started to engage and identify opportunities to leverage existing relationships in the Americas and elsewhere.
SimplePart is a strategic extension of Infomedia's core global offering and uniquely positions us to offer our customers an expanded range of market leading business-to-business and business-to-consumer parts, service and data insights solutions.
The procurement which was finalised towards the end of the 2021 financial year, is not expected to contribute materially to Infomedia.
Infomedia indicated that its core parts and service Software-as-a-Service (SaaS) platform has seen an uptick since December, particularly this quarter. While COVID-19 has somewhat impacted the business, FY21 revenue is projected to come between $95 million and $96 million. In addition, cash earnings before interest, tax, depreciation, and amortisation (EBITDA) are expected to be around $19 million and $20 million.
Infomedia noted that growth in organic monthly recurring revenue coupled with SimplePart revenue will lead to strong momentum for FY22.
The company is scheduled to release its full-year results on 24 August, 2021.
About the Infomedia share price
Over the past 12 months, Infomedia shares have lost roughly 15%, with year-to-date performance down by 30%. The company's share price reached a 52-week high of $2.02 in late December, before sinking on its half-year results.
Infomedia presides a market capitalisation of about $509 million, with approximately 375 million shares on issue.
