What are the terms of Connexion Mobility’s (ASX:CXZ) acquisition of Hallam Road Automotive?

Connexion Mobility Ltd is acquiring 100% of the assets of Melbourne-based Hallam Road Automotive for a total potential consideration of approximately A$5.0 million. This consists of an upfront cash payment of around A$4.0 million and a performance-based earn-out of up to A$1.0 million payable over the next 12 months.

How will Connexion Mobility (ASX:CXZ) fund the A$5 million acquisition?

The acquisition will be funded through a mix of internal cash reserves and debt. Specifically, Connexion is using its existing financial resources—supported by US$5.6 million in net cash and investments held at the end of March 2026—alongside a new A$2.5 million amortising debt facility with National Australia Bank (ASX:NAB).

What immediate financial impact will the acquisition have on Connexion Mobility (ASX:CXZ)?

The transaction is expected to be immediately accretive to Connexion’s earnings per share (EPS). Management projects that the acquisition will boost EPS in the order of approximately 25% to 35% right away, making it a highly profitable addition to the bottom line.

What is the strategic rationale behind Connexion Mobility (ASX:CXZ) buying an automotive repair centre?

Management's primary objective is to maximise shareholder value by improving the size, sustainability, and diversification of its earnings. By moving into physical automotive servicing, Connexion is deploying its underutilised cash reserves into operating assets that generate higher long-term rates of return than its current managed funds and investments.

How does this deal help Connexion Mobility (ASX:CXZ) manage currency risk?

The acquisition acts as a natural hedge against foreign exchange volatility, specifically regarding the AUD/USD pair which has risen by roughly 15% over the past year.

Who is Elie Chakkour and what is his role post-acquisition?

Elie Chakkour is the founder of Hallam Road Automotive. To ensure a seamless transition of day-to-day operations and to preserve vital commercial relationships, he has committed to staying with the business under a paid 12-month handover consultancy.

Image for illustrative purposes only. Not a real photo.

Connexion Mobility acquires Hallam Road Automotive for $5M

Written by Brie CarterPublished May 21, 2026, 11:15 PM

Connexion Mobility (ASX:CXZ) entered into a definitive agreement to acquire 100% of the assets of Hallam Road Automotive, a premier automotive service and repair centre located in Melbourne’s South-East.

The strategic acquisition carries a total potential consideration of approximately $5 million, which features an upfront cash payment of ~$4 million alongside a performance-based earn-out of up to ~$1 million payable over the next 12 months.

The transaction is expected to be immediately accretive to Connexion’s earnings per share, projected in the order of approximately 25% to 35%.

Funding for the deal will be sourced through a combination of Connexion’s existing financial resources—bolstered by a growing net cash & investments position of US$5.6 million reported at the end of March—and a new $2.5 million amortising debt facility established with National Australia Bank (ASX:NAB).

Beyond immediate EPS growth, the investment aligns with Connexion's core objective to maximise shareholder value by improving earnings sustainability.

Operating as a natural hedge, the acquisition is expected to reduce Connexion’s operational exposure to foreign exchange risk, specifically regarding the volatile AUD/USD pair, which has risen by circa 15% over the past twelve months.

To ensure a seamless transition of operations and vital commercial relationships, HRA’s founder, Elie Chakkour, has committed to a 12-month paid handover consultancy.