Acumentis Group Limited (ASX:ACU) agreed to acquire Acumentis (SA) Pty Limited for AUD 1.9 million on February 1, 2022. The transaction is expected to deliver an increase to EPS by 10%. As part of the deal, an upfront consideration AUD 0.95 million by 75% in cash and 25% in newly issued shares. The upfront cash consideration will be paid 40% on settlement with balance in 3 equal installments 6, 12 and 18 months after settlement. Another deferred consideration based on annual Profit Before Tax for three years ended June 30, 2025, is capped as AUD 0.95 million. the deferred consideration will also be settled 75% in cash and 25% in newly issued shares. The cash consideration will be paid with any working capital balance. The transaction is expected to be settled by mid-February 2022 and the transaction effective date would be February 1, 2022.

The shares issued in upfront and deferred consideration will be subject to escrow provisions whereby 100% of the shares are escrowed for 12 months, 75% for 18 months and 50% for 24 months. All shareholders of Acumentis (SA) Pty Limited, will remain as employees of the business during the period till June 30, 2025. The transaction is subject to existing executive shareholders of Acumentis (SA) Pty Limited entering employment contracts with the buyer. Acumentis (SA) Pty Limited reported revenue of AUD 1.427 million and Profit Before Tax of AUD 0.363 million for the year ended June 2021.

Acumentis Group Limited (ASX:ACU) completed the acquisition of Acumentis (SA) Pty Limited AUD 1.75 million on February 10, 2022. On February 10, 2022, Acumentis Group issued 1,463,339 ordinary shares and paid AUD 0.419 million as upfront cash consideration.