Pushpay Share Price Up on US$150 Million Acquisition Deal (ASX:PPH)

The Pushpay Holdings Ltd [ASX:PPH] share price is rising today after the company announced its acquisition of Resi Media.

Pushpay will acquire 100% of the ownership interests in Resi Media for US$150 million.

This purchase price will be paid by the issue of US$40 million new Pushpay shares, with the balance paid in cash.

ASX PPH - Pushpay Share PriceSource: Tradingview.com

Investors reacted positively, with the Pushpay share price climbing 3% to $1.61 in early trade.

Pushpay is a donor software and church management platform with over 11,000 churches as clients and counting.

So could acquiring Resi accelerate Pushpay’s growth?

Pushpay acquires Resi

PPH said Resi Media is a leading company in the video delivery space. It specialises in high-quality transmission for web, multisite, and on-demand streaming.

The company sets itself apart by offering top-tier technology to facilitate reliable and quality live streaming experiences.

It’s a match made in heaven for Pushpay, given Resi’s ‘strong foothold in the US faith sector.’

According to the announcement, over 70% of the Outreach 100 churches use Resi products.

Pushpay management described its union with Resi as a:

Strategically compelling acquisition of a core vertical in the faith sector, with streaming services becoming a critical aspect of church engagement with their communities.

With COVID marking the days of in-person events and spaces long gone, it’s evident that Pushpay has spotted a timely opportunity to partner with Resi.

Resi’s product for the faith sector could be a powerful addition to Pushpay’s current suite of offerings and may help to enhance the company’s value proposition to its customers.

Bullish investors will be eyeing off potential cross-sell opportunities between the two firms.

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PPH ASX outlook

Provided customary closing conditions are satisfied, Pushpay expects the full transaction to be complete by the end of August.

That’s only in a week’s time, so stay tuned for any further developments.

In today’s digital-friendly social climate, any business innovating and acquiring prospects in this sector is worth watching, in my opinion.

Still, I would exercise caution in jumping into a stock on the back of an announcement like this.

Only time will tell if acquiring Resi is enough to propel Pushpay further in these uncertain times…

And these times are definitely uncertain.

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Regards,

 

Kiryll Prakapenka,

For Money Morning

 

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Kiryll Prakapenka is an investing autodidact who is passionate about conducting in-depth research on investments. Kiryll brings sound analytical skills to his work, courtesy of his Philosophy degree from The University of Melbourne. A student of legendary investors and their strategies, Kiryll likes to synthesise macroeconomic narratives with a keen understanding of the fundamentals behind companies.


Money Morning Australia