Pushpay buys Colorado rival for $132m

27 Dec 2019 12:08 PM | Mike Hearn (Administrator)

Pushpay Holdings will add about 4,000 church customers to its books with the US$87.5 million ($132.2m) acquisition of rival Church Community Builder, although co-founder Chris Heaslip signalled his departure next year.

Pushpay bought 100 per cent of the Colorado-based company's shares in an all-cash deal, and is bringing its founder Chris Fowler on to the NZX-listed company's board.

Church Community Builder head Don Harms will continue with the enlarged company, reporting to Pushpay chief executive Bruce Gordon, with the two companies maintaining their existing platforms with other software providers to ensure a continuation of service of their customers.

"This strategic partnership enables us to better serve our customers as we strive to be the number one partner to the US faith sector by providing a fully integrated church management system, custom community app and giving solution," Gordon said.

Pushpay had 7,905 customers at September 30, meaning the acquisition will boost its business by about 50 per cent.

The company said the deal won't have a material impact on earnings in the March 2020 year because of the work needed to integrate the products, but should lead to higher earnings in subsequent years.

Pushpay shares rose 2 per cent to $4.05, having been halted for much of the day pending the announcement. They have gained 26 per cent year to date.

Fowler also bought US$15m of shares from Pushpay director Heaslip at the market price of $3.50. Heaslip will resign from the Pushpay board on March 31, having left his executive role in May of this year.

Pushpay said it will fund the acquisition through existing cash and a US$62.5m debt facility.

Source: https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12293717