Crowley’s Avada makes first step in national expansion
Former Wallaby Dan Crowley’s traffic management company Avada has bought Victoria’s Construct Traffic for $17.6 million.
Avada has bought a Victorian company for $17.6m
Avada listed on the ASX earlier this year and in its acquisition announcement the company also revealed its EBITDA was likely to be between 15 per cent and 19 per cent below its prospectus guidance.
It blamed the dip on La Nina weather disruptions which meant a deferral of contracted revenue into 2023.
For that reason, as well as some contract wins, it forecast strong demand in the current financial year.
Avada said the Construct Traffic deal would deliver national expansion which gave it a base to build growth. It was expected the deal would be earnings per share accretive.
Construct has revenue of about $34 million and an EBITDA of $5 million.
Managing director Dan Crowley said the deal was an important milestone and “first step” in delivering growth.
“The momentum from this significant acquisition for the group will inspire further opportunities in the short term,” Crowley said.
The deal also had an earn-out arrangement for 12 months after the deal. The earn-out was capped at $5.4 million.
