IVE Group (ASX:IGL) has signed a binding agreement to divest its telefundraising business, formerly known as Pareto Phone, for a purchase consideration of $16.5 million.
The business will be acquired by an entity associated with Merchant Place Investments Pty Ltd, a private investment company with offices in Sydney and Brisbane, with the completion due to take place on October 30.
The firm is owned by its three principals, Nick Batchelor, Nick Mole and Tom Mould.
IVE Telefundraising has specialised in outbound telemarketing campaigns, primarily for the not for profit sector, conducting over one million calls per year for its charity clients.
Post completion, IVE said the business will revert back to the Pareto Phone brand and will continue to operate as a standalone business with its 150 staff based in Fortitude Valley in Queensland.
IVE Telefundraising CEO Keith Elliott said, “the business has gone from strength to strength under IVE’s ownership over the last five years as we’ve grown market share and continued to refine and innovate our data driven offer to Australia’s leading charities.
“We have also played an active role in the sector through our involvement with the Fundraising Institute of Australia (FIA) and the many other industry groups.
“My team and I very much look forward to working with Merchant Place to continue to drive growth and expand from what is today a very solid business with a leading market position.”
Merchant Place Investments managing director Tom Mould said the company invests in businesses that consistently generate strong cash flows for their owners – enduringly profitable businesses.
“The Merchant Place principals and our family office investment partners are long-term equity investors and we share a keen personal interest in the charitable sector,” Mould said.
“We are delighted to acquire a market leading business that provides an important and recurring service to its not-for-profit clients.”
At the time of writing, IVE’s shares were trading at $0.74.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter