Invigor takes first round bids for Condat Media to focus on core data analytics and Skyware businesses - CEO 11 DEC 2017 Invigor [ASX:IVO], an Australian data analytics and business intelligence company, is taking first round bids for its Condat Media business as it turns its focus to its core data analytics and Condat Skyware businesses, CEO Gary Cohen said.
The sale process for Condat Media, which forms part of Invigor’s German-based business Condat, was announced earlier this month, and is well underway, with interest being received from a range of IT and private equity companies in Europe, Cohen said. The sale process is expected to be completed in the first quarter of 2018, he noted.
Condat Media is expected to achieve a sale value of at least 1x its current revenue of AUD 6m (USD 4.5m), Cohen said, noting that it counts major European media companies ZDF and Ericsson among its clients.
Invigor is pursuing the sale of Condat Media, which is primarily a services business, so it can focus on growth for Condat’s other business, Skyware, a workforce management and logistics software solutions business, as well as its core Australian business, Cohen said.
As announced today, Skyware is being launched in the Asia Pacific market, where there is considerable growth potential, particularly in helping to solve the last mile of delivery for ecommerce companies, according to Cohen.
Given market appetite for similar companies, notably the AUD 500m market cap delivery management software company GetSwift [ASX:GSW], which announced an AUD 75m capital raise today, Invigor will consider other growth options for Skyware, including a possible spin-off, Cohen said, without elaborating.
Skyware’s customers include Daimler Benz, Liberty Media Group and German railway network operator Deutsche Bahn. The company is currently forecast to generate AUD 2m in revenue in FY18, is profitable and is currently growing at more than 100% per annum, Cohen said.
Meanwhile, Invigor is also focused on growing its core Australian business, which enables business-to-business (B2B) clients to improve sales with real-time insights into current market trends, competitor activity, and effectiveness of marketing and advertising performance.
In April, Invigor acquired Singapore-based shopper engagement and analytics company Sprooki for AUD 4m, giving it a global footprint in Australia, Asia and Europe. It has secured a number of contract wins in recent months with companies such as Asahi, Accolade Wines, Pernod Ricard and Sharp, and counts Microsoft and Val Morgan Outdoor among its partners, Cohen noted.
In the past six months, Invigor has raised AUD 4m, including AUD 1m from Sydney-based investment firm Allectus Capital. Invigor’s top 30 shareholders hold some 75% of the company, with the Cohen family holding some 19%. The company’s enterprise value is AUD 18m and it has a current market cap of AUD 8m.
by Louise Weihart in Sydney
IVO Price at posting:
0.9¢ Sentiment: Buy Disclosure: Held
