Camplify, an Australian peer-to-peer RV-sharing platform, is positioned to expand its European market through a AU$47.6 million acquisition of Germany’s PaulCamper.
The acquisition, accompanied by an AU$8.5 million capital raising by Camplify to fund further growth initiatives, will position the Australian company as a major global player in the RV rental market, doubling its size by bringing on board PaulCamper’s fleet of 5,500 RVs in Europe.
PaulCamper, founded in 2013 by Dirk Fehse, has a foothold in Germany, the Netherlands, and Austria, adding to Camplify’s existing operations in Australia, New Zealand, Spain, and the UK, according to a report.
Camplify will fund the deal via a AU$1.8 million cash payment and the issue of AU$45.8 million in Camplify shares to PaulCamper at a price of AU$1.9624 per share.
“This acquisition delivers Camplify a strategic and targeted growth opportunity in Europe, securing the largest key market, Germany,” said Camplify CEO and founder Justin Hales.
“It provides Camplify with an excellent team of digital marketplace professionals based in Europe, allowing us as a group to optimize and look for expansion opportunities.
Hales said he was impressed with PaulCamper’s operations and excited by the ability these transactions give them to build their business. It could help them accelerate their pathway toward a positive cashflow position and profitability with a significant ability to grow revenue through vertically integrated products.
PaulCamper CEO Fehse, who will stay as head of the European operations, has revealed that the merger of the companies has been in the wings for the past three years.
“In 2019, Justin and myself met and discussed our shared vision and desire to create a community of RV owners globally who have the passion to share their RVs,” Fehse said.
“As a business that has secured key markets in Europe, PaulCamper is pleased to take this next step and be a part of a global public company on the journey with Camplify.”
Camplify says the acquisition is EBITDA accretive at 28.9% before accounting for synergies on a Pro-forma basis for FY22.
The company is raising AU$8.5 million via a two-tranche placement, at a discounted issue price of AU$1.70 a share, with the funds to be used to expand Camplify’s insurance division and to assist in delivering synergies from the PaulCamper acquisition.
A further AU$2 million capital raising will be offered to shareholders via a share purchase plan once the acquisition is approved by shareholders.
Camplify posted an AU$8.2 million loss in FY22, despite a 75% increase in revenue. The company said the PaulCamper acquisition is expected to accelerate the company’s pathway to profitability.
Camplify shares were trading 9.9% higher at AU$2.21 at 2.22 pm AEDT.
This article originally appeared on Business News Australia.