Online property listing group iBuyNew, owned by ASX-listed Disruptive Investment Group, is expanding its reach by buying Melbourne-based property research advisers Nyko Property Pty Ltd.
Disruptive is paying $700,000 upfront, including $350,000 cash and 19,444,444 shares at 1.8 cents each. There’s also an earn-out of up to $175,000 subject to Nyko achieving a minimum of 85 sales over 15 months. Disruptive shares last traded at 1.2 cents each.
In 2016, the Melbourne-based Nyko recorded 56 sales generating $28 million in total transaction value and $1.6 million in revenue. In the first three months of this year, Nyko recorded 17 sales representing 30% of full year forecasts.
iBuyNew ended 2016 with a 75% increase in total transaction value to $84.77 million from 165 sales. Commissions were $2.6 million.
Mark Mendel, CEO of iBuyNew (IBN), says the acquisition transforms the company to a complete property investment solution through established partners, well-developed systems and processes.
“IBN aspires to lead new property sales globally and continues to look for opportunities to accelerate growth,” he says.
Nyko, established in 2008, has agreements with some of Australia’s leading mortgage aggregation and franchise groups.
“These arrangements provide us access to thousands of mortgage brokers Australia wide,” says Mendel . “The consolidation of both businesses will allow us to maximise the benefits and create greater value to our partners in a way not available to us otherwise.”
Nyko founder Bill Nikolouzakis will become Director of Corporate Partnerships at iBuyNew.
“Under the one group, there is substantial opportunity for growth,” he says.
Disruptive Investment Group is paying for the purchase through an already completed equity capital raising of $1.35 million.