Pureprofile Limited has agreed to acquire CRNRSTONE, an established Australian qualitative research firm, for $700,000 in cash, enhancing its market research capabilities and expected to be earnings accretive from year one.
- Acquisition of CRNRSTONE assets for $700,000 in cash
- CRNRSTONE expected to generate $3 million revenue and $300,000 EBITDA in FY26
- Deal strengthens Pureprofile’s qualitative research offerings in Australia
- Transaction incurs one-off costs of approximately $50,000
- Acquisition expected to be earnings per share accretive in first full year
Strategic Acquisition to Expand Qualitative Research
Pureprofile Limited (ASX, PPL) has taken a decisive step to broaden its market research capabilities with the acquisition of Bastion Stable Research Pty Ltd, trading as CRNRSTONE. The deal, valued at $700,000 and payable in cash from Pureprofile’s reserves, is set to complete on 1 March 2026. This move aligns with Pureprofile’s strategic ambition to deepen its qualitative research offerings and expand its footprint in the Australian market.
CRNRSTONE’s Established Market Presence
Founded in 1992 and rebranded in 2022, CRNRSTONE brings nearly three decades of experience in qualitative market and social research. The company operates a proprietary panel called Soapbox, comprising over 100,000 Australians, which provides a valuable resource for qualitative fieldwork. CRNRSTONE’s expertise spans a variety of research methodologies, offering end-to-end project execution that supports data-driven decision-making for brands and agencies alike.
Financial Impact and Growth Prospects
For the fiscal year 2026, CRNRSTONE is forecasted to deliver approximately $3 million in revenue and a pro-forma EBITDA of $300,000. Pureprofile anticipates the acquisition will be earnings per share accretive from the first full year of ownership, benefiting from profitable earnings without diluting equity. Additionally, the transaction will incur one-off costs of around $50,000 in the current financial year.
Synergies and Market Expansion
The acquisition not only fills a qualitative research capability gap within Pureprofile’s existing service suite but also opens avenues for cross-selling between CRNRSTONE’s offerings and Pureprofile’s quantitative research panels. This integration is expected to enhance client value and broaden market reach. Moreover, Pureprofile panel members stand to gain from increased earning opportunities by participating in qualitative projects, while CRNRSTONE’s panel coverage may expand into targeted regions.
Management’s Outlook
Martin Filz, Managing Director of Pureprofile, expressed enthusiasm about the acquisition, highlighting the alignment of CRNRSTONE’s specialist capabilities with Pureprofile’s core business and values. He emphasised the strength of CRNRSTONE’s team and client base as significant assets that will contribute to the Group’s growth trajectory.
Bottom Line?
Pureprofile’s acquisition of CRNRSTONE marks a strategic leap in qualitative research, setting the stage for enhanced earnings and market presence.
Questions in the middle?
- How will Pureprofile integrate CRNRSTONE’s operations and teams post-acquisition?
- What are the long-term growth projections beyond FY26 for the combined entity?
- How effectively will cross-selling between qualitative and quantitative services drive new client wins?