The People Infrastructure Ltd (ASX: PPE) share price has given back its early gains and drifted lower on Wednesday morning following the announcement of two more acquisitions.
At the time of writing the technology-enabled workforce management company's shares are down 1% to $3.10.
What has been announced?
This morning People Infrastructure revealed that it has followed up the recent acquisition of information technology recruitment company Halcyon Knights with two further acquisitions.
According to the release, the company has entered into agreements to acquire Queensland-based healthcare staffing agencies First Choice Care and Carestaff Nursing Services.
The release explains that First Choice and Carestaff are two leading providers of nursing staff to Queensland Health public hospitals, private hospitals, and residential aged care operators across the state.
First Choice is the leading healthcare staffing agency in Brisbane and the Sunshine Coast, whereas Carestaff is the leading healthcare staffing agency in the Gold Coast. The First Choice and Carestaff businesses have been operating for over 14 and 20 years, respectively.
These acquisitions, combined with the company's Edmen Community Staffing Solutions business, will make People Infrastructure the largest provider of health and community care staffing services in Queensland.
Management advised that a total of $16.8 million is payable on closing for both businesses, which will be funded from existing cash reserves following a recent $20 million share placement. It expects First Choice and Carestaff to contribute $3.4 million in EBITDA for the next 12 months.
People Infrastructure's managing director, Declan Sherman said "The acquisition of First Choice and Carestaff represents a logical extension of People Infrastructure's health and community care business in QLD. People Infrastructure will now be the leading health and community staffing business in Eastern Australia through the aggregation of our niche nursing brands First Choice and Carestaff (QLD), Network Nursing (NSW), Victorian Nurse Specialists (VIC) and Australia's leading community care managed workforce provider Edmen Community Staffing Solutions. We are very excited with the platform People Infrastructure now has in the health and community care sector and the operating synergies and cross selling opportunities between our brands."
Elsewhere in the tech sector on Wednesday, the Rhipe Ltd (ASX: RHP) share price has zoomed 10% higher following a positive guidance update and the GBST Holdings Limited (ASX: GBT) share price is up 5% after Bravura Solutions Ltd (ASX: BVS) increased its takeover offer.
