Novatti Group Limited (ASX:NOV) agreed to acquire ATX (M) Sdn Bhd for AUD 9.5 million on October 20, 2021. The total consideration is minimum of approximately AUD 8.4 million up to AUD 9.9 million, payable in cash and Novatti fully paid ordinary shares in two components: (i) initial consideration at completion by way of a cash payment of AUD 3.96 million and the issue of 3,600,000 Novatti shares with a value equivalent to AUD 1.98 million at an issue price of AUD 0.55 per share. These shares will be subject to a two-year escrow period from their date of issue (ii) deferred consideration, payable in two cash instalments following the first and second calendar years post completion, at a minimum aggregate payment of approximately AUD 2.475 million, with potential under an earn out to increase up to an aggregate of approximately AUD 3.96 million if specified revenue targets are reached. The eligibility of the ATX founders and majority shareholders to receive deferred consideration is also subject to their ongoing employment. Under the terms of the acquisition agreement, Novatti will acquire all of the issued share capital of ATX Fintech. ATX generated normalised revenue of AUD 3 million EBITDA of AUD 0.6 million in financial year ended June 30, 2021. ATX's strong leadership team, including its founders K. Sashi Kumar, who hold the positions of CEO and Director – Strategy, and who will remain employed post-acquisition, ensuring continuity. The agreement remains conditional upon finalising due diligence and, among other things, ATX obtaining requisite consents and approvals required in connection with acquisition. Completion is expected to occur by the end of November 2021.

Novatti Group Limited (ASX:NOV) completed the acquisition of ATX (M) Sdn Bhd on January 14, 2022.