SOCO Corporation Ltd (ASX: SOC), a prominent information technology consultancy, has recently announced its intent to acquire Axsym Technology Pty Ltd ACN 640 959 191. This acquisition stands to benefit SOCO in various ways significantly. Notably, it is expected to substantially enhance SOCO's earnings per share, offering a considerable financial advantage. The cultural alignment between SOCO and Axsym Technology, both founded by entrepreneurs sharing similar values, adds a layer of strategic synergy to the deal.
Axsym Technology's impressive clientele, including major government departments and agencies, adds substantial strategic value. The acquisition is valued at a 4.6x EBITDA multiple, contingent upon achieving specific deferred consideration milestones during the financial years 2024 and 2025. Axsym Technology's strong financial performance, with unaudited revenue figures of AU$8.9 million in FY23, further reinforces the compelling rationale behind this strategic acquisition.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
