Operator ComfortDelGro Corporation Australia (CDC) has announced it’s entered into a binding agreement to acquire all shares of A2B Australia Limited.
CDC will buy all shares it doesn’t already own for a cash offer price of $1.45 per share, valuing A2B’s equity value at $182 million.
CDC will official acquire the Australian personal transport provider that has more than 8,000 vehicles in its national network.
Listed on the Australian Securities Exchange, A2B is a local taxi network and major technology and payment solutions provider for the personal transport industry.
Its offerings include taxi services brands 13cabs and Silver Service, as well as leading taxi and booking dispatch platform MTI and the Cabcharge payment solution.
“This acquisition is in line with ComfortDelGro’s strategy to scale our point-to-point mobility business in Australia,” CDC chairman Russell Balding says.
“As a leading taxi network, A2B is highly complementary to our business. Its fundamentals are attractive, with a proven track record of expansion driven by underlying growth in customer demand and driver supply.
“It will also allow for diversification of our offerings in Australia, while at the same time, the proposal will deliver value to the shareholders of both companies.”
The acquisition is in line with CDC’s strategy to scale its growing point-to-point mobility business and transform CDC into a multi-modal mobility player.
CDC managing director and CEO Nicholas Yap says the operator and A2B have already forged a strong relationship over many years.
“The complementary nature of the businesses will allow us to create a stronger company that will provide Australian customers with access to new transport innovations, technology and efficiencies from ComfortDelGro’s global network,” Yap says.
A2B executive chairman Mark Bayliss says the transaction will further strengthen A2B’s business as it’s “a great match for two remarkable companies offering complementary services and markets”.
“We look forward to playing an integral role in Australia in the ComfortDelGro Group, one of the world’s largest land transport companies,” Bayliss says.
“They are committed to delivering best-in-class safe, reliable, inclusive and sustainable transport for today and tomorrow – a vision well aligned with our own.”