G8 acquires in home care provider as it extends support for families with complex needs
G8 Education Ltd has announced the acquisition of specialist in home care and NDIS provider Leor in a deal that will see the creation of a new specialist care division headed up by Leor founder Andrea Christie-David and dedicated to servicing families with complex needs.
“We are excited for Leor to become part of the G8 Education network, and are delighted that Andrea will be joining us to continue to lead the Leor business,” G8 Education CEO Gary Carroll said.
“We believe there is a real growth opportunity in the in-home and specialist care markets and see this acquisition as being an attractive adjacent opportunity for our business.”
“Since we began delivering services under the NDIS we have been achieving positive outcomes for children with complex needs through our unique holistic early intervention model,” Ms Christie-David explained.
“This exciting opportunity provides Leor with the ability to expand our platform and deliver services to families who are looking for tailored learning and specialised NDIS support, in their own home, at times that work for them.”
New specialist care division will bring tailored early intervention and disability support
The new Specialist Care division will offer Leor’s model of early intervention and disability support uniquely tailored to the needs of each child which includes a learning program that integrates the recommendations of allied health professionals such as speech and occupational therapists.
Families who work irregular hours, or who live in remote and regional Australia, where there are no accessible early learning services are also catered for in Leor’s offer, both of which qualify for the Child Care Subsidy.
Leor’s business model is now sufficiently positioned to scaled its offering to meet the increasing demand for in home care (IHC) services, that will be supported by extending opportunities from within G8’s existing family base who have children with complex needs, but also through G8’s large educator base who will be extended employment pathways to allow them to participate in IHC and NDIS settings and in so doing help meet Leor’s staffing needs.
“This new partnership will enable us to expand our service offering, provide greater convenience and flexibility for families and team members and potential new sources of revenue growth for the business,” Mr Carroll said.
“I have enjoyed seeing Leor grow since I first developed the concept, yet I have been hampered by the fact that demand for our services always outsripped supply,” Ms Christie-David added.
“Becoming part of the G8 Education network is the perfect opportunity for Leor to now meet that demand by accessing G8’s scale and expertise,”
Upfront consideration of $2m to be paid for business with neutral impact on earnings
G8 has agreed to pay $2 million up front for the business, with a further $7.5 million available in earnouts over the three years from CY2022 to CY2024 bringing the total potential consideration to $9.5 million.
The acquisition will be funded by existing Company cash reserves and is subject to the customary closing condition of an arrangement of this nature.
G8 anticipates a modest initial investment in capability to support the new Specialist Care division’s establishment after which it is expected to be self-funding with a neutral impact on earnings in FY2022.
“This acquisition is consistent with our overarching focus on driving quality across the business, and finding new and innovative solutions for families, to meet their evolving needs,” Mr Carroll said in closing.
To read the announcement please click here.