Earlypay (ASX:EPY) acquires Melbourne fintech Timelio in strategic bolt-on acquisition
Henslow is pleased to have acted as M&A Corporate Advisor to Earlypay (ASX:EPY) on the signing of a binding agreement to acquire select assets of Timelio, a specialist invoice and trade financing provider to Australian SME’s.
The acquisition, whilst small, is strategically important for Earlypay as it provides:
- Approximately $35m of Funds in Use (FIU) in the core invoice finance product and ~$5m in FIU in trade finance product which collectively adds ~20% to Earlypay’s existing invoice and trade finance FIU.
- High quality portfolio – many of the customers joined Timelio through its acquisition of the Bendigo Bank invoice finance portfolio in 2022.
- Supplier Early Payment software platform which facilitates corporates paying supplier invoices early for a small discount; an attractive product for corporates with excess cash, and for their suppliers seeking working capital flexibility.
- Specialist SME lending team to bolster existing staffing capabilities.
- Increased on-the-ground presence in Victoria.
The acquisition is expected be EPS accretive in addition to providing a range of other strategic benefits. Completion is expected in November 2023.
Having worked with Earlypay over the past 10+ years, we look forward to building upon our relationship as they continue their progression towards being Australia’s leading working capital solutions provider to SMEs.
The transaction provides a further example of Henslow’s ability to partner with exciting growth companies and provide combined and complementary M&A and equity capital market services.