In a statement, Class noted that the transaction would involve the acquisition of all shares in NowInfinity for a maximum enterprise value of $25 million.
“The purchase consideration will be structured with a $10 million upfront cash payment on completion, plus $10 million in Class shares escrowed for two years, to be issued on completion,” the company said.
“There are also deferred consideration payments of up to $5 million contingent on successful integration that are expected to be paid in April and October 2020.”
Class chief executive Andrew Russell said the acquisition represented an attractive opportunity for the company to expand its role across the professional services ecosystem.
“We are constantly looking for new opportunities to grow, and this acquisition is complementary to the Class business in terms of culture, technology and customer base,” Mr Russell said.
“Importantly, it will enable Class to execute on our ambition of providing a broader set of products and services to our customers, which will be further enhanced through stronger integration of both platforms over the medium term. We are excited by this acquisition and welcome the NowInfinity team to Class.”
The transaction would see current NowInfinity chief executive Amreeta Abbott’s role within the firm shift to chief growth officer.
Ms Abbott said the announcement would see NowInfinity continue on its journey to solve key pain points for accountants, financial planners, bookkeepers and lawyers.
“We are excited about the opportunity this transaction creates that sees two market leaders leveraging each other’s strengths, enabling NowInfinity’s ability to continue to innovate and grow with our members,” she said.
The transaction is expected to be completed by 1 February, with further details on the acquisition to be provided at Class’ half-year results announcement on 18 February.
Market size shrinking & CL1 new products are duds. So acquisition only way for new CEO to expand offerings & revenue.
NowInfinity is a good business & acquisition should add profit to CL1 bottom line.
$25m spend is about $100m short of AMPs failed foray into the SMSF sector.
An interesting move by Class. Growth in SMSF softeare product has stalled & the Trust & Portfolio products have failed to gain any traction.
Now Infinity appears to be a good tuck in but can it hold off Grant Abbotts LightYear Docs.
The SMSF sector has stagnated & some commentators believe it is now in decline. $25m is a big investment by the new CEO
“Trust & Portfolio products have failed to gain any traction” – might be true for Class Portfolio, but a bit early to claim that Class Trust hasn’t gained traction? The later product is still under development and is only in “beta” with a limited customer base at this stage.
SMSF boom over?
This was always imminent after Grant Abbott left. Conversations started years ago. Good on NI for giving it a crack without him.
I agree with this one. I used Now Infinity for a long time but we have now made a change to Grant’s new LightYear Docs and will be using BGL CAS360 for corporate compliance. A very smooth transition
He is embarrassing, good on the Now Infinity team.
ha ha ha ha!!!
Elaborate please