Mayfield also secures future growth through greenfield incubator partnershipĪs well as securing immediate access to growth opportunities through the acquisition of the fourteen centres, both parties have also struck an incubator partnership through which Genius will identify, develop and trade up centres for sale to Mayfield. Notably, Genius will provide financial, operational, corporate, legal and marketing services from completion of the deal until 31 December 2022, providing time for the Genius team to achieve their $8.0 million EBITDA earnout hurdle and also giving the Mayfield team time to familiarise themselves with the Genius model and how to operate across jurisdictions.

The Genius deal will see it assume ownership of eight Queensland based centres, five Victorian centres and one centre in South Australia, which will take its overall network to thirty six centres and for the first time give it a multi regional footprint. Mayfield’s pre-deal network consists of twenty two centres located in and around Melbourne, with the Group historically being a regional focused operator, although it has previously expressed ambitions to secure acquisition opportunities in a bid to broaden its regional mix. Mix of locations broadens Mayfields geographic reach post deal to more than just VIC Post the deal Genius shareholders will own around 40 per cent of the enlarged business. Mayfield will fund the cash component of the acquisition with capital raised via an institutional placement through which it seeks to raise around $8.0 million, and issue a further $27.2 million shares directly to Genius for the equity component. The acquisition price consists of an initial sum of $31.2 million payable in a combination of shares (80 per cent) and cash (20 per cent) and a further payment, known as an earnout, of $8.0 million in early 2023 if the acquired centres generate $8.0 million of EBITDA in CY2022.įrom a valuation perspective, the initial payment represents a multiple of 3.9x CY2022 EBITDA and, assuming the earn out hurdle is achieved, the total consideration will be 4.9x CY2022 EBITDA. ASX listed Mayfield Childcare is seeking to acquire fourteen early childhood education and care (ECEC) centres from Melbourne based Genius Childcare for $39.2 million, as well as enter into a five year greenfield incubator partnership aimed at securing future growth for the Group, according to documents seen by The Sector.

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