The All Ordinaries Index (ASX: XAO) is up 0.1% in morning trade on Tuesday, with plenty of help from this soaring ASX All Ords share.
The fast-rising stock in question is IPD Group Ltd (ASX: IPG).
Shares in the distributor of electrical equipment and industrial digital technologies closed yesterday trading for $4.20. At the time of writing today, shares are swapping hands for $4.43 apiece, up 5.5%.
This now sees IPD shares up an impressive 58% since plumbing one-year closing lows on 23 June.
Here's what's catching ASX investor interest.
ASX All Ords share jumps on strategic acquisition
Investors are piling into IPD shares after the company announced that it has agreed to the terms of a binding agreement to acquire Platinum Cables.
Platinum Cables provides high-performance cable solutions for the Aussie mining and resources sector. In FY 2025, Platinum reported revenue of $44.8 million. The company achieved FY 2025 earnings before interest, taxes, depreciation and amortisation (EBITDA) of $8.2 million, with a margin of 18.2%.
The ASX All Ords share will pay $37.5 million upfront for the acquisition, which it said equates to 5.2 times Platinum Cables' FY 2025 earnings before interest and tax (EBIT).
The payment consists of $37 million cash and $500,000 in newly issued IPD shares. There's also a contingent cash consideration of up to $7.5 million. That's based on EBIT growth through to 31 December 2026 (5 times multiple on EBIT growth).
IPD reported it will fund the acquisition with both cash and debt. The ASX All Ords share said it has agreed to an expanded core debt facility with Commonwealth Bank of Australia (ASX: CBA) with a $56.1 million limit. It's also agreed to a new $10 million working capital facility.
Investors are also responding enthusiastically to news that Platinum's current management team will stay aboard and operate the business as a stand-alone entity.
What did management say?
Commenting on the acquisition that's boosting the ASX All Ords share today, IPD CEO Michael Sainsbury said, "The acquisition of Platinum Cables is a continuation of our growth strategy that reinforces our leadership in the mining sector and delivers immediate earnings accretion for shareholders."
The company anticipates pro forma FY 2025 earnings per share (EPS) accretion of around 11.5%, excluding synergies and one-off transaction costs.
Sainsbury continued:
The Platinum Cables business is highly complementary to our combined IPD and CMI business units and is leveraged to the same tailwinds, including the electrification of the Australian economy.
With their strong track record of organic growth and the potential for significant revenue synergies, we look forward to the Platinum Cables team joining IPD Group.
Platinum Cables founder David Bambach added, "We look forward to further growing the Platinum Cables business within the broader IPD Group".
The ASX All Ords share expects to complete the acquisition tomorrow, 31 December.
