FRE
04/12/2014 09:09
ASSET
NOT PRICE SENSITIVE
REL: 0909 HRS Freightways Limited
ASSET: FRE: Acquisition of Australian Information Management company
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 major
Australian capital cities of Sydney, Melbourne, Brisbane and Perth.
LitSupport's services include:
o Electronic Document Services - litigation support, data hosting, objective
coding, electronic materials processing (ESI processing), forensic data
services;
o Bureau Services - photocopying, scanning, printing, onsite court
copying/uplifting of subpoenaed documents, preparation of court and appeal
books and ESI processing; and
o Other Services - general printing, copying and scanning services to
government departments, financial services institutions and other corporate
and commercial organisations.
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. This acquisition is consistent with Freightways' strategy
to develop growth opportunities that complement its existing capabilities.
For further information please contact:
Dean Bracewell
Managing Director
Freightways Limited
Ph: (09) 571 9672
Fax: (09) 571 9671
End CA:00258490 For:FRE Type:ASSET Time:2014-12-04 09:09:27
