Class Limited announces strategic acquisition of documentation platform NowInfinity

Sydney, January 28: Class Limited (ASX: CL1), Australia’s leading SMSF technology platform, has announced it has acquired corporate compliance and documentation technology company NowInfinity.

NowInfinity operates a market-leading platform that offers the Documentation Suite, Corporate Messenger, Trust Register and Super Comply products. Through its cloud-based platform, NowInfinity works with more than 2,000 accounting firms supporting upwards of 400,000 entities, resulting in reduced costs and streamlined back-office operations. Many of these firms are already customers of Class.

The transaction, which involves the acquisition of all of the shares in NowInfinity 3505 Pty Ltd (NowInfinity), is for a maximum enterprise value of $25m. The purchase consideration will be structured with a $10m upfront cash payment on completion, plus $10m in Class shares, escrowed for two years, to be issued on completion. There are also deferred consideration payments of up to $5m contingent on successful integration that are expected to be paid in April and October 2020. The acquisition will be partly funded by a new $10m debt facility, with the remainder to be funded by existing cash.

The transaction is expected to be EPS accretive in FY21.