Hipages : HPG acquires New Zealand's leading online tradie marketplace

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ASX / Media release 9 December 2021

hipages Group acquires New Zealand's leading online tradie marketplace

Builderscrack acquisition creates trans-Tasman market leader, gives access to NZ$26b TAM, 4k active tradies and >95k jobs p.a.

Highlights:

• 100% acquisition of Builderscrack for A$11.8m in cash and equity
• Value accretive transaction, with positive operating cash flow and working capital
• Builderscrack is NZ's leading1 online tradie marketplace, having completed over NZ$250m of job value through its platform since its foundation in 2007
• Gives hipages Group access to NZ$26b TAM, 4k active tradies and >95k jobs posted p.a.
• Small market share of <1% of TAM with significant growth potential and opportunity to unlock additional revenue synergies through business model optimisation and adjacent opportunities

hipages Group Holdings Limited (ASX:HPG) (hipages Group), owner of hipages, Australia's largest online tradie marketplace and Software-as-a-Service (SaaS) provider connecting tradies with residential and commercial consumers, today announces it has completed the acquisition of Builderscrack, New Zealand's leading online tradie marketplace.

hipages is acquiring 100% of the issued share capital of MyQuote Limited, trading as Builderscrack, for A$11.8m, to be 80% funded through existing cash reserves with a 20% equity component. The transaction will be value accretive to hipages Group, with Builderscrack being operating cash flow and working capital positive.

The transaction makes hipages Group the trans-Tasman market leader for trade services, giving access to a new NZ$26b total addressable market (TAM), in addition to Builderscrack's 4k active tradies and 200k registered homeowners.

Co-founded in 2007 by General Manager Jeremy Wyn-Harris, Mark Dickson and Keith Roberts, Builderscrack has grown to be New Zealand's leading online tradie marketplace, with 95k jobs posted on its platform in FY21. It has facilitated over NZ$250m of job value from more than 480k jobs posted since its foundation, including over NZ$67m of job value in FY21.

1 Based on number of jobs posted on Builderscrack's platform

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hipages Group CEO and Co-Founder, Roby Sharon-Zipser, said: "We are excited to announce the acquisition of Builderscrack, New Zealand's leading online tradie marketplace. This makes hipages Group the clear trans-Tasmanmarket leader connecting trusted tradies to homeowners. Jeremy and the Builderscrack team have built a great business around a strong technology platform and an incredibly loyal tradie base. We will supercharge their growth by leveraging the strategic and operational experience we gained from scaling our business in Australia, as well as helping them to grow their brand to capture the huge market opportunity in New Zealand."

Builderscrack General Manager and Co-Founder,Jeremy Wyn-Harris,said: "We have built our business and technology from the ground up and created a brand that resonates strongly with New Zealanders. As Australia's leading online tradie marketplace, hipages Group is a natural partner for us, and joining forces with Roby and his team will enable us to take our business to the next level. We look forward to learning from them and sharing ideas, as well as rolling out new products and services to add value for our tradie customers."

The acquisition of Builderscrack is the latest step in hipages Group's growth strategy, continuing the Company's strong momentum following its recently announced strategic investment in property management technology platform Bricks + Agent, as well as the roll out of Tradiecore, its field service software solution.

Builderscrack delivered a strong performance in FY212, generating revenue of NZ$2.6m, up 24% on pcp, and delivered NZ$1.0m EBITDA at a 37% EBITDA margin. In FY21, it facilitated approximately NZ$67m of job value on its platform from over 95k jobs posted.

Despite being the market leader in New Zealand, Builderscrack has a less than 1% share of its highly fragmented TAM. hipages Group will unlock additional revenue synergies through business model optimisation and adjacent opportunities, with both companies working together to identify further growth opportunities, initially focused on optimising Builderscrack's sales and marketing operations.

Builderscrack has market leading brand awareness in New Zealand and will retain its brand and leadership on completion.

For the seven months post completion in FY22, Builderscrack will contribute A$2.3m to hipages Group revenue and will not have a material impact on hipages Group's EBITDA and EBITDA margin.

Ends

Authorised for release to the ASX by the Board of hipages Group Holdings Limited.

2 Unaudited financial information

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Investor conference call

hipages Co-Founder and CEO Roby Sharon-Zipser and CFOO Melissa Fahey will host a conference call for investors and analysts at 9.30am AEDT today (9 December 2021).

To register for the call and access dial in details, please use the following link: https://webcast.openbriefing.com/8250/

Further Information

Investors	Media
Ryan Thompson	Jack Gordon
[phone]	[phone]
[e-mail]	[e-mail]

About hipages

hipages Group creates effortless solutions that help tradies streamline and grow their business and delight their customers. It is the owner of Australia's largest online tradie marketplace and Software- as-a-Service (SaaS) provider, hipages, connecting tradies with residential and commercial consumers across the country. The platform helps tradies grow their business by providing job leads from homeowners and organisations looking for qualified professionals, while enabling them to optimise their business through our SaaS product. To date, over three million Australians have changed the way they find, hire and manage trusted tradies with hipages, ultimately providing more work to over 31,000 trade businesses subscribed to the platform. The hipages app is available for download on the App Store and Google Play. www.hipagesgroup.com.au

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onlyBuilderscrack useacquisition

9 December 2021 ersonal

Introducing Builderscrack

only					>NZ$250m of job value
use	NZ's leading online		Market-leading		completed from >480k jobs
tradie marketplace1		brand awareness		posted since 2007
ersonal	4k active tradies and		>95k jobs		<1% share
200k registered homeowners		posted p.a		of highly fragmented TAM
1 Bas d on number of jobs posted on Builderscrack's platform
		2