Print and marketing group IVE (ASX:IGL) has signed a binding agreement to divest its IVE Telefundraising business Pareto to an entity associated with Merchant Place, a private investment company with offices in Sydney and Brisbane.
|photo: IVE Group|
“The purchase consideration is A$16.5 million payable in cash on completion, which represents a 5 times multiple of FY20 EBITDA,” IVE Group CEO Geoff Selig said in an announcement to the ASX. “The proceeds of the sale will be used to further strengthen IVE’s balance sheet.”
With annual revenues of around A$14 million, IVE Telefundraising specialises in outbound tele-marketing campaigns for the Australian not for profit sector, conducting over 1 million calls per year for its charity clients.
The business will now revert back to the Pareto Phone brand and will continue operating as a standalone business with 150 staff based in Fortitude Valley, Qld.
Subject to customary conditions, the sale is due to take effect on Friday October 30, 2020.
IVE last month launched ivolve, a new hygiene and personal protective equipment (PPE) business. The company offers pre-press and printing, mailing, merchandise production, stationery, posters and signage, business cards, digital printing, publication printing and freight.