CPE News (3/23/2021) – FAX Capital Corp. (TSX: FXC) has, through a newly formed platform company, completed its previously announced $11.75 million acquisition of an approximate 78 per cent controlling interest in Carson, Dunlop & Associates Ltd.
Carson Dunlop is a leading provider of proprietary technology-enabled education services and software for home inspectors across Canada and the United States, as well as a leading provider of home inspections services in the Greater Toronto Area.
The new platform company will leverage Carson Dunlop as its foundational asset to focus on organic growth initiatives and acquisition opportunities of complementary businesses within property technology, education technology and home services.
Graham Badun has been appointed Chief Executive Officer of its new platform company. Badun will also take on the role as President of Carson Dunlop, the subsidiary’s first acquisition, working alongside Carson Dunlop’s co-Founder & CEO, Alan Carson.
photo credit: Carson, Dunlop & Associates
News Release
FAX Capital Closes Acquisition of Carson Dunlop and Appoints Graham Badun as CEO of New Platform Company
FAX Capital’s new Platform Company will be Focused on PropTech, EdTech and Home Services
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TORONTO, March 23, 2021 (GLOBE NEWSWIRE) — FAX Capital Corp. (the “Company” or “FAX Capital”) (TSX: FXC and FXC.WT) today announced that it has, through its wholly owned subsidiary, completed its previously announced $11.75M acquisition of an approximate 78 per cent controlling interest in Carson, Dunlop & Associates Ltd. (“Carson Dunlop”). The acquisition was financed through the Company’s available cash balance (all currency figures are in Canadian dollars).
FAX Capital also announced today that it has appointed Graham Badun as Chief Executive Officer of its new platform company, which will leverage Carson Dunlop as its foundational asset as it focuses on organic growth initiatives and acquisition opportunities of complementary businesses within property technology, education technology and home services. Mr. Badun will also take on the role as President of Carson Dunlop, the subsidiary’s first acquisition, working alongside Carson Dunlop’s Co-Founder and CEO, Alan Carson.
“We are delighted to welcome Carson Dunlop into the FAX Capital family and welcome Graham as CEO of our new platform company. Graham is a seasoned executive who brings a unique blend of operational acumen, industry knowledge and strong relationships that will play a critical role in creating value at Carson Dunlop and the broader platform company,” said Blair Driscoll, CEO of FAX Capital.
Graham Badun has over thirty years of operating experience in the residential services industry, most recently as CEO of AlarmForce Industries (“AlarmForce”), where he led the team that was responsible for the operational turnaround, technology platform relaunch and sale of the business to BCE Inc. for a 70 per cent premium. Prior to his time at AlarmForce, Graham held multiple roles at Brookfield Residential Property Services (“Brookfield”), including Group Chief Executive, where he led the team that was responsible for a portfolio of companies in real estate and related services including Royal LePage, Canada’s largest real estate brokerage. During his time at Brookfield, net revenue quadrupled across his portfolio through organic growth initiatives, multiple acquisitions and joint ventures with Berkshire Hathaway and Wells Fargo.
“I am excited to join the FAX Capital family of companies and begin executing on the tremendous opportunity to build and scale a PropTech, EdTech and Home Services-focused company,” said Mr. Badun. “Carson Dunlop is a great foundational asset, with a leading market position and a distinct competitive advantage in each of its business segments, great brand recognition, and significant growth opportunities. With the support of FAX Capital, we intend to build and expand upon its existing verticals. The team is excited by the prospects ahead of us and we are committed to creating long-term value for all stakeholders.”
Alan Carson, CEO of Carson Dunlop, said: “I have known Graham for 20 years and believe he is a great cultural fit. I look forward to benefitting from his complementary skill set as we set upon the next phase of growth for the company.”
A presentation with further information about Carson Dunlop is available on FAX Capital’s website: www.faxcapitalcorp.com.
About Carson Dunlop
Carson Dunlop is a leading provider of proprietary technology-enabled education services and software for home inspectors across Canada and the United States, as well as a leading provider of home inspections services in the Greater Toronto Area. Carson Dunlop’s direct to consumer online education business through its private career college is the market share leader in Canada with a growing presence in the United States, and its curriculum is also utilized by third-party colleges and associations. Its home inspection software tools and mobile app, provided on a subscription basis, are used to generate home inspections in over 220,000 homes annually across the United States and Canada. Carson Dunlop was founded in 1978 and currently has 38 employees headquartered in Toronto.
About FAX Capital Corp.
The Company is an investment holding company with a business objective to maximize its intrinsic value on a per share basis over the long-term by seeking to achieve superior investment performance commensurate with reasonable risk. The Company intends to invest in equity, debt and/or hybrid securities of high-quality businesses. The Company initially intends to invest in approximately 10 to 15 high-quality small cap public and private businesses located primarily in Canada and, to a lesser extent, the United States.
For additional information please contact:
Investor Relations
Tim Foran
Email: IR@faxcapitalcorp.com
Website: www.faxcapitalcorp.com
Media Relations
Kieran Lawler
Telephone: (416) 303-0799
Email: Kieran.lawler@loderockadvisors.com