Young Entrepreneur of the Year Steve Scanlan sells half of Recon
Written on the 31 January 2018 by Ben Hall
Brisbane's Young Entrepreneur of the Year Steve Scanlan has sold 50 per cent of two of his businesses to one of Australia's leading listed workforce management companies.
People Infrastructure (ASX: PPE) paid Scanlan $2.8 million upfront in cash for 50 per cent of Recon Solutions and Recon Technology, along with $500,000 in PPE shares.
Recon Solutions provides contractors and permanent talent to the information and communication technology industry Recon Technology is a fast-growing provider of IT strategy development, IT project delivery and staffing solutions to the financial services industry.
"Becoming part of the People Infrastructure group will provide Recon with the scale and capital backing needed to drive the next stage of the company's growth," Scanlan says.
"Both companies have strong management and a great culture with a high degree of loyalty among employees, contractors and clients."
Scanlan, CEO and founder of Recon Solutions and co-founder Recon Technology and Adrian Dixon, CEO and co-founder of Recon Technology, will continue in their current roles post-acquisition and also continue to hold a majority of the remaining equity in Recon.
There will also be an opportunity for Scanlan and Dixon to receive a further shareholding in People Infrastructure based on Recon achieving EBITDA for either FY19 or FY20 of $4 million.
Business News Australia
Author: Ben Hall