Knowledge Shop, a subsidiary of ASX-listed Easton Investments, has now acquired a 60 per cent controlling interest in TaxBanter Pty Ltd.
The $4.28 million deal also includes a put call option for Knowledge Shop to acquire the remaining 40 per cent equity in TaxBanter in two years’ time.
TaxBanter, a Melbourne-based national provider of in-house tax training, will continue to be led by current managing director Neil Jones, with the company anticipated to achieve a full-year normalised EBITA in FY2020 in excess of $1.7 million.
“The synergy between TaxBanter and Knowledge Shop was too good to ignore, with a similar culture and passion for the profession,” Mr Jones said.
“All of us at some point in time need to identify what is needed for the future. Knowledge Shop delivers the resources and support we need to drive TaxBanter’s future trajectory in a way we could not do alone or with a different partner.
“For TaxBanter and our clients, it is business as usual. You will continue to work directly with the TaxBanter team, under the TaxBanter brand, with the same people delivering the quality of products and services we are known for. The acquisition is a strategic move.”
Managing director of Easton Greg Hayes said the acquisition was an “excellent strategic investment” for Knowledge Shop.
“We regard TaxBanter as a highly complementary business to Knowledge Shop and it will accelerate our continuing growth in the professional training market. With this acquisition, annual training revenues for Knowledge Shop will exceed $10 million,” Mr Hayes said.
“The addition of TaxBanter to Knowledge Shop increases the depth and spread of our technical resources, and will further enhance the quality and delivery of programs being offered to the accounting profession and financial services market.”
Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.