Nice. Looks like a good fit. To me, the education and service...

Nice.

Looks like a good fit.  

To me, the education and service licences as part of the deal are probably the best value score for SRY.

"In addition to the retail licence and store locations, the Company is acquiring the Apple licences for Education and Service."

"eStore is one of only two Apple Authorised Service Providers in Indonesia and operates 4 stand-alone Services Centres"




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15 August 2017

Story-i Limited  (SRY)

Acquisition of eStore
ASX Announcement

Further to the announcement dated 10 November 2016 regarding proposed acquisitions, Story-i Limited is pleased to advise that it has entered into a Sale & Purchase Agreement to acquire the business and assets of the eStore group.

The business and assets include the fixtures and fittings, security deposits and pre- paid rentals and inventory of 7 Apple Premium/ Authorised Reseller stores and 4 Apple Authorised Service Centres in Jakarta, Yogyakarta and Bandung.

In addition to the retail licence and store locations, the Company is acquiring the Apple licences for Education and Service.

The consideration is up to the equivalent of A$1.9 million depending on the final stock take and will be dispersed in stages according to the following milestones;

- upon signing of the SPA,
- when Apple has approved the transfer of the retail licences from eStore to Story-i and when the retail store leases are transferred and the stores are handed over,
- when the Apple Education licence is transferred, and
- when the Apple Service Provider licence is transferred and the service centres with the equipment, tools and spare parts are handed over.

The handover is expected to be completed in 3 months.

Rationale for the acquisition
In addition to its retail segment, eStore is one of only two Apple Authorised Service Providers in Indonesia and operates 4 stand-alone Services Centres.

It is also an Apple Education Reseller with a strong client list which includes several universities and international schools and it has corporate customers which includes multinational companies and large local corporations.

The acquisition will create cost saving opportunities across Story-i’s divisions by streamlining operations and creating synergies through the expanded client book.

The acquisition is value accretive and is expected to generate an additional annualised revenue of approximately $16 million on top of Story-i’s revenue of $27million in FY2016 and align with the Company’s strategy to consolidate the fragmented retail consumer electronic market in Indonesia, while expanding geographically to drive growth.

The spread of locations of the proposed acquisition will enhance Story-i’s brand exposure by expanding its presence into new geographies.

The addition of several Apple Premium Reseller stores to Story-i’s portfolio will improve margins across the board and make the Company the top 3 largest Apple reseller in Indonesia in terms of number of stores.

The proposed acquisition will accelerate the growth of Story-i as it provides strategic store locations in cities in which the Company does not have a presence and adds additional sources of revenue through the Service licence, educational and corporate clients from eStore.

Negotiation for the funding required for the acquisition is in the final stages and the Company should be in a position to announce details to the market in the next few days.

Michael Chan, Executive Director, said “The acquisition accelerates the growth of Story-i. It would have taken time and we would have incurred significant capex to open 11 locations in the 3 new cities. The acquisition will have a positive impact on our top and bottom line in FY2018.”

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