Airtasker Limited (Airtasker) is pleased to advise that it has entered into a definitive agreement to acquire the assets of Oneflare, Australia’s 3rd largest local services platform which serves more than 540,000 Customers and 14,500 verified businesses each year3. Oneflare has a strong presence in trades, home improvement and professional services.
What does Oneflare bring to Airtasker’s portfolio?
- 480,000 unique visitors to Oneflare’s platform per month
- 50,000+ posted jobs per month
- 540,000 unique customers per annum
- 14,500 active verified businesses
- $2,300+ estimated average task price4
The Acquisition of Oneflare will enhance the Airtasker CX and deliver top platform synergies:
- Strengthens network effects – Airtasker and Oneflare Customers gain access to a wider range of skills and faster response times whilst Service Pros (including both independent Taskers and verified businesses) get access to more job opportunities than ever before.
- Unlocks high value trades opportunity – Airtasker and Oneflare will gain access to a suite of features designed to empower Services Pros in high value service categories including trades, home improvement and professional services.
- Single technology platform – Operating a single technology platform to serve a significantly larger user base will create a range of technology, data, brand and financial synergies.
What are Airtasker’s thoughts on the association?
Commenting on the acquisition, Airtasker Co-founder and CEO, Tim Fung, said “I’m super stoked to bring together Airtasker and Oneflare to create Australia’s no.1 marketplace for local services. Together, we can offer our customers access to an even greater range of local services and faster response times whilst creating more job opportunities than ever before.”
“By acquiring Oneflare, we also accelerate a push into higher value service categories including trades, home improvement and professional services to deliver on our mission: to empower people to realise the full value of their skills,” Tim further commented.
What are the specifics of the transaction?
Funding and Equity Raising
The purchase price of $9.8 million to acquire the assets of Oneflare comprises:
- $7.55 million in Airtasker Shares, issued at $0.43 per Share, with 50% escrowed for 12 months from issue and 50% escrowed for 24 months from issue
- $2.25 million in cash
Airtasker has launched a fully underwritten placement of approximately 14.5 million new ordinary shares at $0.43 per Share to institutional, professional and sophisticated investors, with Placement proceeds of $6.25 million used to fund the cash component of the acquisition price, the FY23 estimated investment in Oneflare, and Acquisition and Placement costs.
The Placement Shares and Shares to be issued under the Acquisition will be issued within Airtasker’s existing placement capacity under ASX Listing Rule 7.1.
The Placement price of $0.43 represents a discount per share of:
- 15.9% to the last traded price of Airtasker on 3 May 2022 of $0.51;
- 13.6% to the 5 day Volume Weighted Average Price of $0.498; and
- 14.6% to the 10 day Volume Weighted Average Price of $0.504.
The Shares to be issued under the Placement represent about 3.5% of Airtasker’s pre-offer issued share capital, and the total Shares to be issued under the Placement and Acquisition represent 7.7% of Airtasker’s pre-offer issued share capital. All shares issued under the Placement and Acquisition will rank equally with Airtasker’s existing fully paid ordinary shares.
Existing shareholders associated with Airtasker Directors James Spenceley, Peter Hammond and Xioafan (Fred) Bai, or associates (all of which are existing shareholders) have agreed to subscribe for $3.55m in the Placement. This participation will be subject to shareholder approval at an extraordinary general meeting of shareholders to be held in late June 2022.
The Company will offer a Share Purchase Plan (SPP) to eligible shareholders in ANZ, at the Placement price of $0.43, to raise a maximum of $1.2m. Any proceeds from the SPP will be applied to further strengthen the balance sheet. If the SPP is fully subscribed, the Shares issued under the SPP will represent about 0.7% of Airtasker’s pre-offer issued share capital.
Eligible shareholders with a registered address in ANZ (each an Eligible Shareholder) who held Shares in the firm at the record date of 7.00pm (AEST) on 3 May 2022 will be entitled to acquire up to $10,000 of new Shares in Airtasker at the Placement Price without brokerage or transaction costs. Further information will be sent to shareholders in due course.
Further details of the Acquisition and the Placement including an indicative timetable are set out in the Investor Presentation provided to the ASX. The Investor Presentation contains important information including key risks and foreign selling restrictions with respect to the equity raising and a summary of the Acquisition agreement. The Placement is fully underwritten by Morgans Corporate Limited. Maddocks is acting as legal advisers to Airtasker.