Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Freightways Acquires New Business in Australia


Freightways Acquires New Business in Australia

Freightways Limited (Freightways) announces that it has purchased the Australian information management company, Databank Technologies Pty Ltd (DataBank).

The acquisition is effective from 1 July 2006 and payment of the purchase price will be staged over two years. Initial payments totalling around A$18 million will be made during the first few weeks of ownership. Two subsequent payments of up to a maximum of approximately A$6 million each, dependent on achievement of agreed annual earnings performance, will be made after the finalisation of the results for the years ended 30 June 2007 and 2008, respectively.

For the year ended 30 June 2007, DataBank is expected to contribute annualised EBITDA of approximately A$2.7 million. The expected total purchase consideration represents an effective multiple, calculated over the two-year period of the earn-out and based upon maximum earn-out achievement, of 7 times EBITDA. This acquisition is expected to be EPS (earnings per share) positive immediately for Freightways.

DataBank is the No.2 operator by market share in the Data Storage niche of the Information Management sector in Australia and according to Freightways Managing Director, Dean Bracewell “is a successful business with an operating culture similar to that of Freightways”.

“This acquisition in Australia is a well considered and important step in the development and growth of Freightways,” says Mr Bracewell “Although small, relative to the size of Freightways, we expect DataBank will be a catalyst for future offshore growth in niche markets where we have proven capability.”

The acquisition is seen as a natural extension for Freightways as a leading supplier of offsite Data Storage services in New Zealand through its ‘Data Security Services’ business. It is one of three Freightways brands operating in the Information Management sector in New Zealand. Other Information Management services currently provided by Freightways include document storage through ‘Archive Security’ and the destruction and recycling of documents through ‘Document Destruction Services’.

Freightways operates in three distinct markets being the express package, business mail and information management markets. The acquisition of this business is consistent with Freightways’ strategy to develop incremental growth opportunities that complement its existing operations.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news