The Swoop Holdings Ltd (ASX: SWP) share price is lifting higher on Tuesday after the company announced plans to acquire Sydney-based voice service provider, VoiceHub.
At the time of writing, the Swoop share price is up 3.59% to $2.02.
Swoop expands into voice services
VoiceHub offers a combination of traditional voice communication inbound services as well as more sophisticated products such as virtual numbers, SMS messaging solutions and Advanced Intelligent Networking. The business operates across both Australia and New Zealand.
According to the announcement, VoiceHub has invested significantly in upgrading its operations and automation technology. Swoop believes this provides a "strong springboard" for continued growth in this space.
The acquisition will cost $6 million, comprised of $4 million in cash and $2 million in Swoop shares.
The purchase price represents a 4 times multiple of VoiceHub's FY21 normalised earnings before interest, taxes, depreciation, and amortisation (EBITDA).
VoiceHub is entitled to an earnout of up to a maximum of $2.5 million based on its FY22 EBITDA.
The transaction is expected to be complete on 31 October subject to conditions including obtaining consent to change ownership and VoiceHub employees entering into new employment agreements.
Management commentary
Swoop CEO Alex West commented on the acquisition, saying:
Acquiring VoiceHub's network provides another opportunity for Swoop to further expand the range of services we can offer across our growing client base in Australia.
Swoop share price snapshot
The Swoop share price has almost surged fourfold since its 50 cents initial public offering (IPO) in late May. It closed at $1.25 on its first day of listing, marking a year-to-date return of 58%.
During this time, the company has successfully acquired four acquisitions to expand its regional fixed wireless network.
Swoop completed a $41 million capital raising this month to prop up its balance sheet and provide flexibility in financing future acquisitions.
