AD1 Holdings (ASX: AD1), the company which owns recruitment site ApplyDirect, is set to expand its recruitment and HR services with the acquisition of mentoring business Art of Mentoring which, if utilised, can further the career pathways of jobseekers and professionals.
The $1.5 million acquisition comprising $1m cash and $500,000 of AD1 shares is expected to be completed by the end of October, from which point mentoring will be offered on AD1’s career platform as a new software-as-a-service upgrade.
“AoM is a compelling strategic fit for the Company with a cutting-edge SaaS product, a diversified recurring revenue stream and strong growth prospects,” said AD1 CEO, Prashant Chandra.
“Our complementary customer base will enable the Company to expand its footprint within both the government and professional association sectors.”
Led by Founder and Managing Director Melissa Richardson, Art of Mentoring delivered $1m in revenue through FY20 from its mentoring programs. With a changing job market being shaped by the impact COVID-19 has had on all types of business, AD1’s rationale behind the acquisition is driven by a growing need for structured mentoring programs and will complement their existing HR services.
“We are excited to join the AD1 group, which will allow us to accelerate our growth and make high quality, effective mentoring available to more people,” said Richardson.
“We are proud of what we have achieved so far and look forward to leveraging the synergies across the group. AD1 is a perfect strategic fit for us.”
Further performance incentives are also linked to the acquisition if revenue targets are met over the next two years.
The acquisition comes after AD1 Holdings reported their first profitable quarter for the quarter ending 30 June 2020 where the Company reported $217k net operating profit from $1.2m in receipts.
The Company has also recently extended their Managed Services Agreements with the Victorian Government for 3 years, and the NSW Government for 2 years.
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