With almost impeccable timing, Camplify (ASX: CHL) has today completed the acquisition of peer-to-peer motorhome and campervan rental platforms Mighway and SHAREaCAMPER (SaC) from Tourism Holdings (NZX: THL), just as New Zealand opens up to vaccinated visitors from across the globe.
The acquisitions follow last week’s decision by the New Zealand Commerce Commission to clear the purchase, ruling it is unlikely to substantially lessen competition in any New Zealand market.
For a total consideration of up to $7.37 million, the all-scrip deal will take place in two tranches 12 months apart. The initial $3.3 million, calculated from an agreed share price of $3.34 per share, and the second payment will be subject to an escrow period of 18 months.
“This acquisition delivers Camplify a strategic and targeted growth opportunity in two of our key markets,” Camplify CEO and founder Justin Hales told Business News Australia.
“It solidifies our owner and consumer base for future growth and establishes a relationship between RV-industry leaders that will leverage cross-promotional marketing benefits and deliver value-added services to van owners in New Zealand and Australia.”
“The timing is ideal; our New Zealand growth performance has already been strong. With the expected return of unrestricted Australia and New Zealand travel, our New Zealand-based RV owners are excited about welcoming back Aussies,” he added.
As part of the deal, Camplify will manage more than 800 vehicles in New Zealand, making them the dominant player in the Kiwi market. SaC’s Australian operation will also transition to Camplify, providing another 100 plus listings.
Mighway and SaC’s brands, customers, operations and staff will all be consolidated into Camplify’s operations and onto its NZ platform, with the expectation that existing synergies will help scale the business.
“Both Mighway and SHAREaCAMPER have been operating in New Zealand for more than four years and have established themselves in the number one and number two market positions from a fleet and transaction perspective,” Hales said.
“This acquisition also begins a strategic relationship between THL and Camplify. The two companies will work together on servicing more customers and growing the Camplify brand in Australia and New Zealand.
“As part of this relationship THL, through RV Supercentre, will provide management of Camplify RV owner's vehicles in New Zealand and Australia. This relationship will extend to marketing Camplify’s platform to owners of vehicles who utilise the services of THL.”
THL is a New Zealand-based global tourism business specialising in the manufacture, sale and rental of motorhomes, including online peer-to-peer rental platforms. Aside from Mighway and SHAREaCAMPER, THL’s brands include Maui, Britz and Mighty.
The New Zealand Commerce Commission is currently still considering an application from Tourism Holdings (ASX: THL) to purchase 100 per cent of Apollo Tourism & Leisure (ASX: ATL). Last week, Australia’s consumer watchdog outlined preliminary concerns over the proposed deal.
Apollo is currently the largest shareholder of Camplify, with a 17.8 per stake, which will transfer to THL if the acquisition is approved. Camplify has confirmed it will work with THL in Australia to develop and extend the existing SaC and Mighway relationships.
Camplify’s peer-to-peer platform was established in Australia in 2015 and expanded into New Zealand in 2019. It also operates in Spain and the United Kingdom.
“We are seeing increased interest and booking requests from Kiwis heading to Australia and Aussies heading to New Zealand now that the borders have reopened,” Hales said.
“The demand for caravan, campervan and motorhome rentals continues to grow with both the support of the domestic market in New Zealand and the incoming international arrivals that have begun from today for vaccinated tourists from visa-waiver countries. This naturally puts us in a really strong position.
“Now that there are fewer restrictions on international arrivals, we are starting to see an influx of interest from other international visitors, such as Israel, the UK and Canada, so it’s a great opportunity for us to capitalise on this and increase the number of van owners on the Camplify platform in New Zealand.”
Following the announcement, shares in Camplify (ASX: CHL) rose by 0.78 per cent, to $2.57 per share, as of 12.45 pm AEST.
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