Hipages Group Holdings (ASX:HPG) acquired a 51% stake in digital-first insurance platform VIZ Insurance from Insurtech Gateway Australia for AU$1.4 million, according to a Thursday filing with the Australian bourse.
VIZ offers specialized insurance products for more than 85 trade occupations, per the filing.
The deal expands Hipages into strategic insurance adjacencies, "significantly increases" its total addressable market, and is expected to drive accelerated revenue growth, the company said.
Hipages will take two seats on the VIZ board and also received a call and put options to acquire the remaining equity in VIZ over four annual tranches, with pricing set at a multiple of future revenue linked to the achievement of earnings before interest, taxes, depreciation, and amortization margins.
Separately, Hipages said it will launch an on-market share buyback on or after May 14 for up to 10% of its issued shares. The program will run for up to 12 months and be financed using existing cash facilities.
Shares of Hipages surged 16% in recent Thursday trade.