the British multinational public transport company, on Friday acquired a 60% stake in the Silicon Valley employee shuttle company, WeDriveU for $84.3 million.
National Express has the option to acquire remaining 40% stake in tranches over the next three years.
WeDriveU transports almost 7 million passengers annually, and provides provides employee shuttle services to many of the largest Fortune 500 companies based in Silicon Valley and the broader San Francisco Bay Area, as well as a presence in several other fast-growing US cities.
It had revenues of $139.9 million and a normalised operating profit of $15.4 million in 2018. Gross assets at the end of the year were valued at $80 million. The company said that the transaction will be earnings accretive from completion.
Shares in National Express were trading 0.97% higher at 415.60p a share midday Friday.
Dean Finch, CEO of National Express Group, said: "I am delighted WeDriveU are joining National Express as part of our strategic acquisition programme.”
“As the premier operator in Silicon Valley and the wider San Francisco Bay Area, WeDriveU provides the opportunity for expansion into a fast-growing market. WeDriveU also has a presence in other fast-growing cities in the US, which present other platforms for growth in this very attractive market.”
National Express is to form a new shuttle division within its North American business, led by the WeDriveU management team, to drive expansion in the employee, university and hospital shuttle markets, which combined, is a market worth over $5 billion in annual revenue.
WeDriveU's Chairman and CEO Dennis Carlson said: "I am delighted to be joining National Express. We have grown our business significantly in recent years and plan to continue expanding into new markets, drawing on National Express' reputation for excellence and its extensive nationwide presence.”
Follow News & Updates from National Express here:
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
Toby Hall, CEO of MMX, told investors: “Our revenues are increasingly predictable, with healthy channel sales and strong renewal revenues now driving the business forward.”
SP Angel research note on commodities and miners, featuring: Centamin (CEY LN) – Q2 Production and exploration update Edenville Energy* (EDL LN) – Start of mining operations at the Northern Area to drive coal run rates up Peak Resources (PEK AU) – Rare earth market update Rio Tinto (RIO LN) – Oyu Tolgoi schedule delayed for additional technical studies Shanta Gold (SHG LN) – Q2 Production keeps Shanta on track to achieve 2019 production guidance Tertiary Minerals* (TYM LN) – Sale of shares in Sunrise Resources