- Transport and service optimisation company Orcoda (ODA) has entered into agreements to purchase Betta Group in a potential $5 million deal
- Betta is a Brisbane-based transport company that specialises in rail, road and air infrastructure power services contracting
- Under the agreement, Orcoda will issue $2.5 million worth of shares and $1 million cash, with three additional instalment payments
- Orcoda says Betta is the perfect fit into the company's resource logistics division
- On market close for the weekend, Orcoda is up 17.7 per cent and trading at 20 cents per share
Orcoda (ODA) has agreed to purchase transport service business, Betta Group, in a potential $5 million deal.
Betta is a long-standing transport company that specialises in rail, road and air infrastructure power services contracting but also has contracts for services in oil and gas and mining projects.
Under the agreement, Orcoda will issue $2.5 million worth of shares, valued at a price of 16 cents per share and $1 million cash. An additional $1.2 million or $1.5 million to be paid in $400,000 to $500,000 in three instalments every six months.
Betta is exposed to growing infrastructure markets in Central Queensland, which are likely to grow further with significant government stimulus given it's an essential service.
For the 2020 financial year, Betta reported $9 million in revenue and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $2.1 million.
Orcoda Managing Director Geoff Jamieson believes Betta is the perfect fit into the company's resource logistics division.
"Our contracting methodologies are the same. Once a contract is won, we will both manage the contract utilising our management skills in managing workers, assets and utilise our existing ‘best in class’ software to optimise the project outcomes and deliver better value for our customers," he told the market on Friday.
Betta founder and Managing Director Geoff Williams says Betta's contracts are mostly remote and it will benefit from Orcoda's software, contracting and management expertise.
"The joining of our businesses will add significant value and efficiency to the
business and enhance its profitability," he said.
"There are multiple major infrastructure projects coming up in the road, rail and air in Central Queensland and a combined Orcoda/Betta business will be well-positioned to win a lot of these contracts," he added.
On market close for the weekend, Orcoda is up 17.7 per cent and is trading for 20 cents per share.