Airtasker picks up Domain-backed competitor Oneflare for $10 million

Airtasker picks up Domain-backed competitor Oneflare for $10 million

Leading online services marketplace Airtasker (ASX: ART) will acquire the assets of competitor platform Oneflare for $9.8 million, representing a huge fall in its value since Domain Group (ASX: DHG) purchased a 35 per cent share for $15 million in 2016.

It is a deal that will bring together two platforms allowing tradespeople and other professionals to perform odd jobs and services, from plumbing to cleaning, gardening to tax accountancy, and more.

The bulk of the acquisition - approximately $7.55 million - will be paid by giving Oneflare's owners Airtasker shares that will be held under escrow, with the remaining $2.25 million to be paid in cash.

Not only will Sydney-based Airtasker need to dilute its shareholdings by 7.7 per cent to push the deal ahead, but bringing Oneflare into the fold effectively will require fresh investment. 

Airtasker will raise approximately $6.25 million through a fully underwritten placement to support the cash component of the deal, investments into Oneflare in FY23 and other costs relating to the acquisition and placement. New shares will be issued at $0.43 each, representing a 15.9 per cent discount on the last trading price.

The placement will be followed by a $1.2 million share purchase plan (SPP) to buffer the balance sheet. 

Founded in 2011, Oneflare is the third largest local services platform which serves 540,000 customers and 14,500 verified businesses annually, particularly in the trade, home improvement and professional services spaces.

Airtasker, which listed on the ASX in early 2021, claims the acquisition will enhance the customer experience and deliver synergies by giving customers a wider range of skills to draw upon.

“I’m super stoked to bring together Airtasker and Oneflare to create Australia’s no. 1 marketplace for local services,” Airtasker co-founder and CEO Tim Fung said.

“Together, we can offer our customers access to an even greater range of local services and faster response times whilst creating more job opportunities than ever before.

“By acquiring Oneflare, we also accelerate a push into higher value service categories including trades, home improvement and professional services to deliver on our mission: to empower people to realise the full value of their skills.”

As detailed by Airtasker, the timeline of integration will see the acquired outfit progressively combined with ART’s existing platform, with an aim to retire the Oneflare brand within 18 to 24 months.

The purchase price of $9.8 million includes $7.55 million in Airtasker shares, issued at $0.43 per share  - a 15.9 per cent discount on the company’s last trading price of $0.51 per share - and $2.25 million in cash.

Shares in ART remain in a trading halt.

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