Monday, 12 November 2018 – Sydney – Infomedia Ltd (ASX:IFM), a leader in parts and service software to the global automotive industry, announced today it has entered into an agreement to acquire Australian based, automotive data solutions company Nidasu.
Nidasu is the leading provider of critical automotive data analytics to automakers and dealerships throughout Australia and the Asia Pacific. The monthly subscription business model is highly complementary to Infomedia’s software as a service (SaaS) recurring revenue business.
Nidasu’s data analytics and reporting solution is well established and supported by many of Infomedia’s existing customers, as well as new automakers, in the Asia Pacific region. The acquisition is a key step in building Infomedia’s data strategy and presents a significant opportunity to access new customers and leverage Infomedia’s data business globally.
Infomedia’s CEO Jonathan Rubinsztein said: “The acquisition complements Infomedia’s existing core business. By combining solutions, we offer significantly more value to our customers as we support them to sell more original parts, deliver excellent customer service and retain loyalty to the automotive manufacturer brand.”
The Nidasu team will join Infomedia. Nidasu Co-Founder and CEO Jonathan Scharrer said: “We are excited about joining Infomedia whose global footprint, strong customer relationships and quality commercial infrastructure will support the expansion of our business.”
The acquisition is expected to be accretive to both revenue and earnings immediately. Contribution to the 2019 financial year result will be small. The transaction will be funded from Infomedia’s existing cash reserves and is expected to complete early in the new calendar year.
Infomedia’s outlook for the 2019 financial year remains the same. The company is confident about the year ahead due to an increase in recurring revenue from contracts won in prior periods and disciplined cost management. Infomedia will report its first-half financial year results for the sixth months ending 31 December 2018, on 25 February 2019.