IVE Group sells telefundraising business for $16.5m
IVE Group has divested its IVE Telefundraising, formerly Pareto Phone, business for the consideration of $16.5m.
IVE Telefundraising will be acquired by an entity associated with Merchant Place Investments and is currently subject to customary conditions. Completion is due for October 30.
The IVE Telefundraising business will return to the name Pareto Phone following the sale. Picture: Patrick Hamilton
The $16.5m purchase price represents a five times multiple of FY20 EBITDA (earnings before interest, taxes, depreciation, and amortization) of the business. The proceeds of the sale will be used to strength IVE’s balance sheet.
IVE Telefundraising specialises in outbound tele-marketing campaigns in the Australian not for profit sector, conducting over 1m calls per year for its charity clients. The business will revert back to the Pareto Phone brand following the sale and operate as a standalone business.
For the 12 months ending June 30, 2020, IVE Group reported a $36.7m profit, a 6.3% drop on the previous year. The business took a hit earlier this year when Coles decided it would cease printing and delivering catalogues to consumer’s homes, but the supermarket remained a client of IVE Group and still produces its magazine and in-store catalogues through the business. IVE Group reported the change would impact revenue by $30 – $40m.
