The Camplify Holdings Ltd (ASX: CHL) share price is racing off to all-time highs on Tuesday after the company announced the acquisition of two Australia and New Zealand based acquisitions.
At the time of writing, the Camplify share price is up 12.7% to $4.79.
Camplify now positioned as the largest player in New Zealand
Camplify has entered into an agreement to acquire the Mighway and SHAREaCAMPER business and its assets in Australia and New Zealand.
According to Camplify, the acquisition will position the company as the largest peer-to-peer market place in the New Zealand market, adding an additional ~900 RVs to its Camplify platform.
Mighway and SHAREaCAMPER have been operating in the New Zealand market for more than four years and are positioned as the first and second largest players by fleet and transactions figures.
The strategic expansion will cost up to $7.37 million paid in shares and is subject to any final adjustments based on future bookings and fleet acquisition calculations.
The shares will be paid in two equal tranches of $3.685 million, the first taking place upon completion and the second in 12 months time.
The purchase price represents a 5.46 multiple of Mighway and SHAREaCAMPER's FY21 revenues.
The transaction is expected to be complete on 30 November, based on the achievement of condition precedents.
Management commentary
Camplify CEO and founder Justin Hales commented on the transaction, saying:
This acquisition delivers Camplify a strategic and targeted growth opportunity in two of our key markets. It solidifies our owner and consumer base for future growth, and establishes a relationship between RV-industry leaders that will leverage cross promotional marketing benefits, and deliver value-added services to van-owners in New Zealand and Australia.
The timing is ideal. Our New Zealand growth performance has already been strong, and with the expected return of unrestricted Australia and New Zealand travel, our New Zealand-based RV owners are excited about welcoming back Aussies in 2022.
Camplify share price snapshot
It was just a few months ago that Camplify made its ASX debut at an initial public offering price of $1.42 a share.
The Camplify share price was off to a wobbly start, closing at $1.40 and trading sideways for the next two months.
The company's operational performance has been weighed down by widespread lockdowns across Australia and New Zealand, but management remains optimistic about the expected rebound in unrestricted travel.
Today's sharp move up brings its year-to-date return to a cool 240%.
