ABG Sundal Collier acted as exclusive financial advisor to Crayon in relation to its acquisition of Rhipe Limited

On 6 July Crayon Group Holding ASA (Crayon) announced that it has entered into a binding Scheme Implementation Deed (“SID”) with Rhipe Limited (Rhipe) under which it is proposed that Crayon will acquire 100% of the shares in Rhipe by way of Scheme of Arrangement (the “Scheme”), an Australian legal concept whereby Rhipe will seek to convene a meeting of its shareholders to vote on the proposed acquisition. Subject to shareholder approval and other customary conditions for a transaction of this nature, the transaction is expected to close in Q4 2021.
The acquisition is expected to advance Crayon’s position in the APAC region and significantly contribute to the organic growth and profitability of the group. Crayon will pay a total cash consideration of AUD 2.50 per Rhipe share, corresponding to an equity value of approximately NOK 2,600 million, an enterprise value of approximately NOK 2,300 million and an estimated CY2021 adj. EBITDA multiple of 15.6x pre-synergies. The transaction is partly financed by the newly completed NOK 1,800 million senior unsecured bond issue, whereby ABG Sundal Collier acted as joint bookrunner.
Established in 2003, Rhipe is a leading, Australian-based wholesale provider of subscription-based cloud licenses, infrastructure, and services in the APAC region. Rhipe has about 500 employees and serves more than 3,000 IT resellers across 10 countries in the APAC region. On a combined basis, the acquisition is estimated to add approximately NOK 140 million to Crayon’s LTM Q1 adjusted EBITDA.
ABG Sundal Collier ASA acted as exclusive financial advisor to Crayon in relation to the acquisition.