Weeks after being dumped by Optus Perth based Force Technology has been sold for $9.5M, they had revenues of $44M.
The buyer is as tipped exclusively by ChannelNews Stealth Group Holdings.
Force that has been trying to sell the business for more than 12 months has seen several competitors review their financials only to back off buying the business due in part to their lack of long term contracts with the4 likes of Optus.
They describe themselves as a leading wholesale distributor and solutions provider in the large and growing, $2.2 billion mobile accessories market, selling its products through 3,310 retail reseller stores. It’s not known if this includes Optus stores.
Stealth is acquiring 100% of the shares in Force for approximately $9.5 million with an additional outperformance incentive if specific profit targets are exceeded in FY26.
The deal is based on 4X EBITDA for FY23 and FY24F, before transaction costs with Stealth funding the deal via the issue of new ordinary shares.
Stealth management claim that the Force business aligns with Stealth’s focus on high-margin, capital-light, cash-generative products.
The big benefit appears to be Stealth’s larger, scale and their ability to access new retail outlets.
Force has revenues of $44.0 million, and a 6% EBITDA before transaction costs.
The combined Stealth and Force business projected revenue is $159 million, and EBITDA of $8.5 million, before transaction costs.
The expected cost synergies are $1.2 million per annum, with full benefits by the second year after the acquisition and via the introduction of new products to the Force portfolio.
