The People Infrastructure Ltd (ASX: PPE) share price is charging notably higher on Monday morning.
At the time of writing, the workforce management company’s shares are up a solid 4% to $3.55.
This latest gain means the People Infrastructure share price is now up a sizeable 60% over the last 12 months.
Why is the People Infrastructure share price charging higher today?
Investors have been buying People Infrastructure shares this morning after it announced a new acquisition.
According to the release, the company has entered into a binding agreement to acquire the SwingShift Nurses business.
Swingshift Nurses was established in 2000 and is a leading nursing agency focused on the mental health market. It is a contracted preferred supplier to most public sector hospitals in the Victorian market.
The release explains that the two parties have agreed an acquisition price of $3.1 million. This is payable in cash upon completion and will be funded from People Infrastructure’s existing cash reserves.
Management expects the acquisition to be earnings per share accretive. It is also expecting the Swingshift Nurses business to generate $1 million in operating earnings in the first 12 months following completion.
Positively, this is expected to be a swift process, with management anticipating the acquisition completing in the coming weeks. This is subject to satisfaction of sale conditions.
People Infrastructure’s Chief Executive Officer, Declan Sherman, appears very positive on the acquisition.
He commented: “The acquisition of SwingShift Nurses is highly complementary to our existing Victorian nursing staffing business. The Business is well established in the Victorian market and will facilitate further growth into the mental health market.”
“People Infrastructure is especially attracted to the Business due to its strong position in the Victorian specialist nursing on-hire contracting market, and its long term relationships with its customers,” he concluded.
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More reading
- Here’s why the People Infrastructure (ASX:PPE) share price is one to watch today
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of People Infrastructure Ltd. The Motley Fool Australia has recommended People Infrastructure Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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