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AD1 Holdings Limited, continues to drive organic growth

Team Veye | 01 Oct 2020 ASX - AD1
AD1 Holdings Limited, continues to drive organic growth

AD1 Holdings Limited (ASX: AD1)

Acquisition of SaaS platform Art of Mentoring

AD1 Holdings Limited (ASX: AD1) (AD1 or the Company) on 30 September 2020 announced that its fully owned subsidiary Utility Software Services (USS) has signed a Master Services Agreement with Power Club Limited (Powerclub) for the provision of its CORE Customer Interface SaaS platform and related managed services. The initial term of the contract is three years.

(Chart source: TradingView)

Highlights:

  • AD1 Holdings Limited (AD1 or the Company) had on 30 September 2020 announced the signing of the transaction documents for the acquisition of SaaS business Art of Mentoring (AoM) (Acquisition). AoM is Australia’s leading mentoring program provider that delivers best-in-class programs through an intuitive SaaS platform.
  • The Acquisition is expected to provide significant benefits to the Company, including the addition of a diversified recurring revenue stream of approximately $1 million with excellent growth outlook and significant sales synergies with the Company’s career- platform offering.
  • The share sale and purchase agreement provide for the Company’s 100% acquisition of AoM (on a cash free, debt free basis) to be funded by an initial upfront cash payment of approximately $1 million and scrip component of approximately $500,000 of new AD1 shares. The agreement provides for further cash and scrip based earnouts over two tranches, which will be subject to the achievement of revenue growth targets.

AD1 signs three-year contract with Powerclub

AD1 Holdings Limited on 21 September 2020 announced that its fully owned subsidiary Utility Software Services (USS) had signed a Master Services Agreement with Power Club Limited (Powerclub) for the provision of its CORE Customer Interface SaaS platform and related managed services. The initial term of the contract is three years.

Powerclub is a highly innovative and rapidly growing member-owned energy retailer which challenges the industry’s status quo by providing retail and business customers access to wholesale energy pricing (Data Source – Company Reports)

 

Veye’s Take

AD1’s increasing shareholder value through EPS accretive acquisitions is its important priority. The Company believes the AoM acquisition delivers on that priority. AoM is a compelling strategic fit for the Company with a cutting-edge SaaS product, a diversified recurring revenue stream and strong growth prospects. AD1’s complimentary customer base will enable the Company to expand its footprint within both the government and professional association sectors. The Company continues to drive organic growth and pursue additional strategic acquisition opportunities as they present themselves. The stock, after about two years, had broken the trend on the upside and closed above ichimoku cloud on both short term and long term charts. The stock is having strong support at $0.051. It has already closed above its resistances on weekly and monthly t/f. It can have the potential of a super run, maybe even to earlier highs. The latest "Buy" on AD1 Holdings Limited was given at the price of $.047 on 20 August 2020. It has already grown by more than 27% in less than one and a half months till now. Veye maintains a "Hold" on “AD1 Holdings Limited” at the current price of $0.06

Disclaimer

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