Jaywing and Massive Group Ltd entered into an Agreement on 7 July 2016, whereby Jaywing acquired 75% of the shares of Massive Group, with the remaining 25% subject to a Put and Call Option from July 2020. This 25% stake has now been acquired by Jaywing for a consideration of $4.0m (c.£2.2m), comprising $3.0m (c.£1.66m) immediately, followed by a series of monthly payments totalling $1.0m (c.£0.54m) between now and 30 June 2021. The cumulative total consideration for the purchase of Massive Group is then $9.5m (£5.4m).
Massive Group’s business has grown strongly since 2016 and has more than doubled its EBITDA. This has enabled approximately 93% of the total consideration for the put option to be funded from funds generated in Australia. Massive Group continues to work collaboratively with the UK business on clients and services.
Andrew Fryatt, CEO, commented:
“Since the original agreement in 2016, the management team of Massive Group have very successfully driven both revenue growth and EBITDA performance, building a strong foundation for the future business for the next few years. We are delighted to welcome them fully into the Group, and I know they are committed to continuing this record of growth, trading as Jaywing Australia.”
This announcement is released by Jaywing and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 ("MAR"), and is disclosed in accordance with the Group's obligations under Article 17 of MAR.
For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Group by Andrew Fryatt, Chief Executive Officer.