Hiremii Ltd (ASX:HMI) will acquire 100% of recruitment business Inverse Group Pty Ltd.
HMI has entered into a share purchase agreement to acquire the energy, resource and digital sectors focused recruitment business for up to A$1.5 million (subject to certain performance milestones being achieved).
According to Hiremii Ltd (ASX:HMI) CEO Christopher Brophy, the acquisition will not only increase revenue but will also enhance capabilities.
“The acquisition of Inverse Group expedites our access to market, is likely to provide additional organic revenue through cross-selling across a larger portfolio of clients, substantially reduces client concentration risk and enhances capability across both businesses,” Brophy said.
"Most of all I am thrilled to welcome Andrew Hornby and Chris Flint to our executive team; they bring with them a wealth of experience and are highly regarded in the industry. I look forward to working with them.”
Completion of the acquisition is expected to occur on or around November 15, 2021.
HMI shares have been as much as 18.1% higher this morning to A$0.098.
Acquisition has long reach and strong numbers
Inverse has reach across Australia, New Zealand and South-East Asia and operates under three divisions:
- Inverse Energy. This is the company’s project and execution partner across traditional power, oil and gas and renewable industries. Inverse Energy has operations across greenfield and brownfield projects, providing technical and corporate support throughout the whole project life cycle.
- Inverse Resources. Provide recruitment expertise for operators and contractors in the mining industry. It delivers permanent and contract source solutions, with a focus on customer experience for both client and candidates during the recruitment process.
- Inverse Digital. Partners with organisations to help drive successful transformation and change management projects, implement data science and analytics capability, design automation and AI systems within their operations.
HMI is a technology-driven full-service labour-hire and recruitment company with two core business components, Hiremii Recruitment Pty Ltd, a fixed fee recruitment business, and Oncontractor Pty Ltd, a recruitment and full-service labour-hire business, providing digitised employee onboarding and labour-hire services.
Both companies use Hiremii’s cloud-based platform, which utilises machine learning and artificial intelligence to remove the tedious manual tasks associated with the recruitment and onboarding process, pre-vetting and shortlisting candidates based on employer’s specific requirements.
Given the nature of the businesses, the HMI-Inverse combination shows plenty of upside on client and revenue front.
“This is a great opportunity for us to join an ASX-listed company, utilising AI-backed technology to deliver industry-leading recruitment outcomes,” Inverse Group CEO Andrew Hornby said.
“We are incredibly excited about being an early mover with this technology and the opportunity it presents for delivering a level of quality and service unparalleled in the industry. We are also excited to join a strong, diverse leadership team and help support the future growth of Hiremii Ltd (ASX:HMI).”
Acquisition terms
The total purchase price for the acquisition of Inverse Group is up to A$1.5 million and comprises:
- A$800,000 to be paid on completion;
- A$200,000 to be paid in or before March 2022 subject to Inverse Group achieving a 12-month trailing reviewed or audited revenue of A$12 million or more as of December 31, 2021;
- A$250,000 to be paid in or before June 2022 subject to Inverse Group achieving a 12-month trailing reviewed or audited revenue of A$14 million or more as of March 31, 2022; and
- A$250,000 to be paid in or before October 2023 subject to the company achieving a 12-month trailing audited revenue of A$16 million or more as of June 30, 2023.
The completion payment will be funded via HMI’s existing cash reserves and the acquisition is subject to the completion of full due diligence.