Fairfax Media buys e-tender company TenderLink
- 14 December, 2010 10:53
Fairfax Media (ASX:FXJ) has acquired e-tender company TenderLink.com for up to $16.4 million.
Fairfax said it expects the acquisition to close within 45 days, as long as certain conditions are met.
The total maximum purchase price is an earnings multiple of eight times TenderLink's forecast ebitda for FY11.
TenderLink, headquartered in New Zealand, provides web-based electronic tendering solutions in Australia and New Zealand, using a licensed SaaS model.
The company receives revenue from subscription, set-up and advertising fees, and has around 150,000 registered service suppliers particularly in the construction, local government, utilities and higher education sectors.
Fairfax Digital CEO, Jack Matthews, said TenderLink provides access to 99 per cent of publicly advertised tenders in Australia and New Zealand.
“As the clear leader in its market, TenderLink fits our strategy of acquiring high growth transactional businesses that provide services to the SME market,” he said.
TenderLink has 38 staff in New Zealand and nine in Australia.
FXJ shares fell 0.35 per cent to close at $1.410 following the announcement on Monday.