SINGAPORE (May 8): Medinex Limited is acquiring full ownership of SKI Corporate Services and SKI Consultancy, collectively known as the SKI Group, for a total consideration of $1.2 million.
The SKI Group provides business support services such as accounting, tax and corporate secretarial services to clients mainly in the IT advertising industries, which Medinex claims not to have a strong foothold in.
In its filing on Tuesday, Medinex says the acquisition will allow it to expand its customer base by gaining access to a greater number of potential clients in the IT and advertising fields.
It also intends to increase its business support services revenue by expanding into new customer segments and markets, enhancing its business support services to clients in various other industries outside of its core target market of the healthcare industry.
Considering SKI Group’s total FY18 revenue and net profit before tax margin, Medinex highlights that its acquisition will effectively increase its own net profit tax margin for business support services from approximately 32% to 36% -- thus positioning the Medinex for greater potential income and value uplift as it takes on the servicing of the SKI Group’s clients.
Shares in Medinex closed 1.8% higher at 28 cents on Tuesday.
