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Third party research

Awardit: Acquires a major competitor in DACH - ABG

Awardit

This is a third party research report and does not necessarily reflect our views or values

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Acquires IPO Prämien Services for EUR 7.8m
Implied multiple of 16x-4x EBITDA on '22/23-'21/22
Could add 8% to 2042e adj. EBITA based on mgmt. expectations


Acquires IPO Prämien Services at 16x-4x EBITDA

Awardit will acquire 100% of IPO Prämien Services, a German company active in technical solutions and product assortment for reward shops linked to loyalty and employee benefit programmes. The company is also the biggest competitor to Awardit's Prämie Direkt, according to management. The purchase price is EUR 7.8m (paid in cash, closing 31 Oct) compared to sales and EBITDA of EUR 18m and 0.5m in FY'22/23 and EUR 24m and 1.9m in FY 21/22. The transaction also includes a potential earnout related to a possible new part of the business capped at EUR 2m over a two-year period. Excluding potential synergies and earnouts, the multiple corresponds to 16x-4x 22/23-21/22 EV/EBITDA. The acquisition could add 4%-16% to 2024e adj. EBITA based on the last two years' performance. Awardit said its own valuation of the company is based on EUR 1m EBITDA, which implies a valuation of 8x EBITDA and 8% addition to 2024e adj. EBITA.