GO2 People co-founders Billy Ferreira (left) and Paul Goldfinch greet their listing on the ASX in 2017.

GO2 plans $8.4m acquisition

Tuesday, 23 April, 2019 - 13:29

The GO2 People has entered into a share purchase agreement to acquire a Gold Coast-based training provider for up to around $8.4 million, and is seeking to raise up $4 million via a share placement to help fund the purchase.

In a statement, Belmont-based GO2 said it entered into an agreement to acquire Industry Pathways (IPW) Pty Ltd from former Barminco underground driller Peter Evans.

Under the agreement, GO2 will issue $2 million worth of shares and will also pay $2 million in cash and pay the aggregate balance of all loans by IPW to the vendor, capped at $1 million.

Additionally, Mr Evans will receive up to $3.375 million in earn-out payments if its earnings before interest and tax equates to $2 million this financial year, $2.2 million next financial year, and $2.5 million for the financial year after.

The share placement will have a minimum of $2.7 million and a maximum of $4 million, but specific details of the share placement have not yet been disclosed.

GO2 is a provider of recruitment, building and training services.

It has two offices in WA, including its headquarters, as well as four in Queensland, one in Victoria and one in New South Wales.

IPW runs the Safety & Security Academy, the Emergency Personnel Academy and the Australian Paramedical College.

GO2 managing director Billy Ferreira said the acquisition of IPW represents an exciting opportunity for the company to broaden its offering via an industry leading training organisation, with an effective and innovative training methodology.

“There are considerable synergies between IPW and GO2, and the potential to leverage these synergies into new geographies and industry sectors is very exciting,” he said.

“None are more appealing than the potential for GO2 to provide real employment and placement outcomes to students who complete their training.

From a corporate perspective, we are thrilled to have secured the acquisition of a wellmanaged, high margin business which is significantly EBITDA accretive.

“We expect IPW to contribute significantly to the Group, as we focus on delivering meaningful profits in FY20 and beyond.”

GO2 listed on the ASX in 2017 after a $10 million IPO.