ASX-listed Broad Investments has bagged two acquisitions - premium Apple reseller, MyMac and Apple accessories wholesaler and importer, Monsta Industries.
The transaction involves a mix of shares and $200,000 cash payment.
Negotiations took four months and Broad stated it was able to negotiate an agreement ahead of several other competitors.
“It was a hard fought battle on both sides but the result is fair and pleasing for all the parties and providers,” Broad chairman, Vaz Hovanessian, said in statement. “For Broad, the acquisitions are of significance not only because this was the third attempt by Broad in two years to acquire the businesses, with no success on the first two occasions, but also because it opens up so many opportunities for Broad to benefit its existing and new-found shareholders.
“This is the first successful acquisition among others that are planned.”
The acquisitions complement Broad’s other technology business, Mirrus and will see the three businesses merge operations into a single location at Monsta’s facilities, saving on warehousing, dual administration and accounting costs.
MyMac has four stores – three in Melbourne and one in Sydney. It has been operating as a premium Apple dealer for 15 years, achieving about $14 million in annual turnover. This is expected to increase in line with additional turnover that Monsta and MyMac’s recent schools initiative will bring to it.
Monsta’s turnover amounts to about $1 million and supplies to various Apple resellers and technology stores across the country.
Broad stated Monsta will be able to supply accessories to the four MyMac stores at favourable prices, adding to the bottom line of both businesses. Monsta previously didn’t supply to MyMac stores.
Broad expects the three businesses will boost its position in becoming a high level player in the technology and telephony space.
Broad highlighted that MyMac’s repair and service income increased 35 per cent year-on-year, and is expecting this trend to continue, providing increasing annuity income as a secure revenue base, which attract higher margins than its retail operations.
MyMac recently expanded its operations into supplying Apple products to schools and setting up LAN and internet security along with service and repair options.
MyMac founder and managing director, Steve Bardel, will stay on with the business for at least three years.