Alloggio set for AU$60m acquisition by Next Capital
Australia: New South Wales-based short-term rental operator Alloggio Group is set to be acquired by private equity firm Next Capital in a transaction worth around AU$60 million.
Alloggio, which is the Italian word for ‘accommodation’, has entered into a Scheme Implementation Deed with the private equity firm. Should the purchase be concluded, Next Capital would acquire 100 per cent of the shares in Alloggio for $0.30 per share in cash, giving Alloggio a valuation of just over $60 million.
The board at Alloggio, which only went public on the Australian Securities Exchange [ASX] in November 2021, has unanimously endorsed the takeover bid, which remains subject to shareholder approval in a vote that is scheduled to take place in July.
Matthew Keen, independent non-executive director of Alloggio, said: “After careful consideration, the Independent Board Committee has concluded that the proposal is in the best interests of ALO shareholders and unanimously recommends that shareholders vote in favour of the scheme.”
It is believed that Alloggio co-founders, Will Creedon [CEO] and Karen Howard [non-executive director], hold a 28.9 per cent collective stake and support the takeover bid, however HD Capital and Microequities own 7.4 per cent and 5.81 per cent stakes respectively. The support of the latter firms is deemed to be critical, given their lack of support to a previous takeover bid for online training software Readytech a few months ago.
Founded in 2015, Alloggio Group features two business divisions – holiday property management and mid-market hotels – that use a proprietary in-house technology platform, providing an end-to-end solution for travellers, holiday property owners and managers.
The group’s portfolio of properties are located in popular tourism destinations across Australia, including Magnetic Island, Noosa, Coolum, Brisbane, Coffs Harbour, Maitland, Port Stephens, Newcastle, Bathurst, Bega, Jervis Bay, Mollymook / Milton, Mornington Peninsula and the Great Ocean Road.
Since raising $16.5 million while going public via an initial public offering [IPO] in November 2021, Alloggio has continued to expand its portfolio across Australia, including acquiring North Queensland-based property management business Best of Magnetic in February, investing $16 million in acquisitions in holiday hotspots as part of a comprehensive six-month expansion programme in August, and purchasing fellow operator A Perfect Stay in an $11 million transaction in December.