Shares in international peer-to-peer recreation vehicle (RV) sharing platform Camplify received a boost on Wednesday following the announcement of a $7.37 million acquisition to buy the New Zealand and Australian business and assets of Mighway and SHAREaCAMPER from Tourism Holdings (NZX: THL).
Less than a week after the company reported 106% year-over-year revenue growth in the first quarter which saw shares surge 22%, the stock is up 234% since its June listing at $1.42. The new deal will make it the largest peer-to-peer marketplace operator in New Zealand by adding an additional over 900 RVs to its platform.
The transaction is expected to complete on the 30th of November and will be paid for in CHL shares across 2 equal tranches of $3.685 million. The first on completion, and second in 12 months time, after the completion period for provided warranties. The shares will also be subject to an escrow period of 18 months. The deal also restricts THL from directly operating a peer to peer RV sharing marketplace in Australia or New Zealand for 5 years. The transaction price represents a multiple 5.46 of revenue for the combined Covid-19 affected FY21 results, which over the past three years have been heavily impacted due to lack of international tourism in the New Zealand market.
Camplify will consolidate the platform, brands and operation of Mighway, and SHAREaCAMPER into its operations while seeking additional synergies. Both Mighway and SHAREaCAMPER have been operating in New Zealand for more than 4 years and have established themselves in the number 1 and number 2 market positions.
This acquisition also begins a strategic relationship between Tourism Holdings and Camplify. The two companies will work together on servicing more customers and growing the Camplify brand in Australia and New Zealand. THL through RV Supercentre will provide management of Camplify RV owners vehicles in New Zealand and in Australia, along with marketing Camplify’s sharing platform to owners of vehicles who utilise services of THL.
Camplify CEO and Founder Justin Hales commented: “This acquisition delivers Camplify a strategic and targeted growth opportunity in two of our key markets. It solidifies our owner and consumer base for future growth, and establishes a relationship between RV-industry leaders that will leverage cross-promotional marketing benefits, and deliver value-added services to van-owners in New Zealand and Australia.“