Pushpay (ASX:PPH) share price higher on US$150 million Resi Media acquisition

Pushpay has bolstered its offering with a new acquisition…

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The Pushpay Holdings Ltd (ASX: PPH) share price is pushing higher on Monday morning.

In early trade, the donor management platform provider’s shares are up 3% to $1.61.

Why is the Pushpay share price charging higher?

Investors have been bidding the Pushpay share price higher today after it announced a major acquisition.

According to the release, Pushpay has entered into a definitive agreement to acquire 100% of the ownership interests in Resi Media for US$150 million in cash and shares. This represents 8.8x FY 2021 revenue.

The consideration comprises US$110 million in cash and US$40 million in shares. The former will be funded by a combination of cash on hand and a senior secured debt facility of US$90 million.

Management expects the acquisition to close by the end of August. This is subject to satisfaction of customary closing conditions.

What is Resi Media?

The release explains that Resi Media is a US-based market-leading streaming solutions provider. It services more than 70% of the Outreach 100 largest churches in the US. Its offerings comprise live streaming services to web, social media, mobile apps, and other locations and multisite streaming which delivers video to remote locations.

Management believes Resi Media is well positioned to execute on a value proposition of high quality, reliable live streaming as streaming becomes a core part of faith-based and other organisations’ operations.

It also notes that its Resilient Streaming Protocol (RSP) protects against audio and video quality loss during transmission regardless of network interruptions. The technology enables live streaming online across any platform, social media or the organisation’s own brand. Customers can automate, monitor and review streams to make events extremely effective.

Resi Media’s executive team will continue leading the business.

Pushpay’s CEO, Molly Matthews said, “Adding Resi’s top tier streaming solutions to our product suite will greatly enhance our value proposition to customers, allowing Pushpay to fully support churches’ digital engagement with their communities, and ensure Pushpay is staying at the forefront of church technology innovation. We welcome the Resi team to Pushpay and look forward to working together in providing market leading solutions to the faith sector.”

The Pushpay share price is down 10.5% in 2021.

Should you invest $1,000 in Pushpay right now?

Before you consider Pushpay, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Pushpay wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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