WZR 0.00% 3.7¢ wisr limited

MoneyMe acquiring SocietyOne for $132m. How much is WZR worth?

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    From the SMH:
    "ASX-listed digital lending company MoneyMe has announced it is acquiring peer-to-peer lending business SocietyOne for an estimated $132 million.In a statement to the ASX, MoneyMe announced the acquisition will “boost revenue, customer and profit growth” and has the objective of “winning market share from incumbent lenders”.For MoneyMe, the deal will lead to a 72 per cent increase in its loan book size to $934 million and a 63 per cent increase in yearly revenue to $146 million.MoneyMe managing director and CEO Clayton Howes said the acquisition would have “immediate scale advantages”.“The opportunity to accelerate growth and cost efficiencies are quickly realised by combining the strengths of both brands,” Mr Howes said, adding that SocietyOne’s operations will be migrated to MoneyMe’s Horizon platform.Meanwhile, MoneyMe will look to introduce SocietyOne’s credit score product to MoneyMe".

    Based on these figures, SocietyOne's loan book is $391m, making the acquisition price 34% of this. (When SocietyOne had been spruiking the idea of an IPO it had been talking about a valuation of 65% of the loan book, so this new valuation may have come as a bit of a disappointment to its funders). Given Wisr's loan book size of around $900m (assuming the same rate of growth this quarter as last), this would value the company at $306m, and the share price at 22.5c.
 
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