Freightways Limited (Freightways) has extended its presence in the Australian information management market with the purchase of LitSupport Pty Ltd (LitSupport), which provides electronic and physical evidence management services to the legal industry from a network of offices in the Australian metropolitan capitals of Sydney, Melbourne, Brisbane and Perth.
LitSupport’s services include:
LitSupport has been acquired by Freightways’ wholly-owned subsidiary, The Information Management Group Pty Ltd (TIMG). LitSupport’s suite of services complements those of TIMG and positions TIMG higher on the service chain of the legal industry, in particular, but also for government and corporate Australia. The acquisition is effective immediately.
The purchase price for LitSupport includes an initial payment of A$17.1 million and a potential earnout payment of up to A$12.9 million based on its FY2017 financial performance. It is expected that in its first 12 months of Freightways’ ownership, LitSupport will generate revenue of A$17 million and earnings (operating profit) before interest, tax, depreciation and amortisation (EBITDA) of A$3.8 million. Capital expenditure applicable to this acquisition in the coming year is expected to be approximately A$0.2 million. This acquisition is expected to be immediately EPS (earnings per share) positive.
Freightways operates in the express package & business mail and information management markets. Managing Director Dean Bracewell says “this acquisition is consistent with Freightways’ strategy to develop growth opportunities that complement its existing capabilities.”
At its Annual Shareholders Meeting in October, Freightways announced a record first quarter result, backing-up its earlier announcement in August of a record full year result.
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