LiveHire (LVH:ASX), an Australia-based direct-sourcing platform provider, reported revenue today of AUD 4.4 million (USD 2.9 million) for the half year ended 31 December 2022, an increase of 18% over the prior corresponding period.

The company also announced that it has signed a Binding Term Sheet on a strategic US-based shift scheduling technology business acquisition of Arrived Workforce Connections Inc. The acquisition will allow LiveHire to further penetrate existing Direct Sourcing clients and win new customers that require shift scheduling as part of their total workforce management solution.

Arrived has developed a shift management capability plus mobile application which matches workers to available work, based on preferences and skills.

The proposed acquisition is subject to the completion of due diligence, execution of an asset sale agreement and LiveHire shareholder approval.

LiveHire has reached binding terms to acquire all the business and assets of Arrived Workforce Connections Inc, for USD 2 million in LiveHire shares at completion, each with an issue price of AUD 0.35 (USD 0.24) plus USD 2 million in contingent scrip consideration, each with an issue price of the lesser of the 15-day Volume Weighted Average Price of LiveHire shares and AUD 0.35 (USD 0.24). All consideration is to be paid in LiveHire shares with no cash consideration payable to Arrived.

According to the group, the proposed acquisition will allow LiveHire to integrate Arrived’s shift management mobile and desktop applications into the LiveHire platform and provide an enhanced solution for placement of contingent and shift workers.

The proposed acquisition and accompanying organisational restructuring are expected to be net cashflow neutral over the 12 months post acquisition, through the combination of staff synergies and new deals.

Following completion of the proposed acquisition, Jennifer Byrne, Chief Executive Officer of Arrived, will join LiveHire’s executive team as the Company’s new global Chief Product and Technology Officer, based in Arizona in the US. She will report to LiveHire’s CEO Christy Forest.

LiveHire said Direct Sourcing revenue of AUD 0.9 million (USD 0.6 million), represented a decrease of 18% over the year due to the cessation of Covid-19 related role activity.

The group said cash receipts from customers for the six-month period stood at AUD 5.2 million (USD 3.5 million), representing an increase of 46% over the year with rolling 12-month receipts of AUD 9.4 million (USD 6.3 million), representing a 36% increase over the year.

LiveHire added that that capital raise of AUD 10.1 million (USD 6.8 million) in August 2022 enabled the turbo launch and implementation of key US clients, further investment in product features and compliance, and working capital coverage.

Looking ahead, LiveHire said it will continue to focus on driving growth and market share in North America through Direct Sourcing of contractors and Australia & New Zealand in SaaS for HR.

LiveHire shares closed today at 0.150 (USD 0.10), no change on the day and 15.38% above the 52 week low of AUD 0.13 (USD 0.087) set on 21 February 2023. The company has a market cap of AUD 50.52 million (USD 34.0 million).