Shares in customer care and billings solutions business Hansen Technologies Limited (ASX: HSN) are locked in a trading halt today after the company announced a deal to buy Norway-based billings business Enoro.
As Enoro is reported to carry net debt of $26 million the enterprise value of the acquisition is $96 million and Hansen will ask investors to tip in $50 million to help fund the purchase by issuing 10.8 million new shares at $3.70 each. This represents an 8.4% discount to the last closing price of $4.04.
Enoro is an energy billings specialist that that is reportedly a market leader in Norway, with operations across other Scandinavian and West European countries.
Enoro is forecasting revenue and EBITDA of $55 million and $9 million in FY17, which would represent a 10.6x EV/EBITDA multiple in terms of the price paid by Hansen. The deal is also expected to be earnings per share accretive in FY18 for Hansen.
In revealing today's news Hansen also confirmed it is expecting FY17 revenues of $174 million and EBITDA in the region of around $45 million, which would be on an EBITDA margin between 25%-30% of revenues.
Hansen remains one of the better tech shares on the ASX given its impressive track record and founder-led management team appear to run the business with a long-term focus. Another profitable operator growing nicely in a similar space is Integrated Research Limited (ASX: IRI).
