The company has acquired Classic Funding Group for $11m. The business provides invoice discounting and equipment finance. Morgans observes the acquisition provides significant scale for emerging divisions and is attractive from a strategic and valuation perspective.
The company recently raised $13m in equity and the proceeds will be used to strengthen the balance sheet post the acquisition of Thorn Trade and Debtor Finance. Morgans calculates, post settlement, the capital base supports an invoice loan book of $170-250m.