Covata Limited (ASX:CVT) entered into a binding agreement to acquire dataglobal GmbH from Wolfgang Munz for €10.9 million on January 30, 2019. The consideration will be settled approximately 65% in cash and approximately 35% through the issue of ordinary shares of Covata Limited. The share component of the consideration is fixed at 260 million shares in Covata Limited. The consideration shares are to be voluntarily escrowed for a period of up to 18 months from the issue date, subject to any additional escrow applied by ASX. The cash component of the transaction will be funded from the proceeds of capital raising of AUD 21.28 million (€13.31 million). On June 26, 2019, the terms of the transaction were revised. A cash consideration of €6.5 million and the issue of 693 million Covata shares will now be given. Following completion of the acquisition, it is intended that Covata Limited will change its name to dataglobal Limited and will remain listed on ASX. On completion of the acquisition it is intended that the Board of Covata Limited will comprise Ted Pretty as Executive Chairman, Bill McCluggage as Lead Independent Director, Wolfgang Munz, the founder and Chief Executive Officer (CEO) of dataglobal, as CEO and Managing Director and up to two other independent directors with relevant global software experience. The main operational office of Covata Limited will shift to Heilbronn with a small office retained in Sydney. The transaction is subject to completion of due diligence, regulatory approvals, Covata Limited obtaining all necessary Board and shareholder approvals, completion of a capital raising, there being no material adverse event between the date of the agreement and completion of the acquisition, Wolfgang Munz receiving confirmation from a relevant German taxing authority that the transactions contemplated by agreement will not trigger an adverse taxing event, Wolfgang Munz providing evidence to the reasonable satisfaction of Covata Limited that dataglobal is cash-free and debt-free at completion, dataglobal procuring the consent of counterparties to identified major contacts to the change in control of dataglobal resulting from completion of the acquisition, the agreement of certain identified key dataglobal personnel to the continuation of their employment with dataglobal following completion and Wolfgang Munz procuring that dataglobal divests itself of the managed service business and the grant of certain limited intellectual property licences to, and sub-leases and services arrangements with, the owner of the managed services business. On June 26, 2019, Covata has also filed the prospectus to raise capital in order to fund the transaction. On August 7, 2019, Covata shareholders approved the transaction. The parties have agreed to seek to satisfy the conditions by no later than May 31, 2019 which is the expected closing date for the transaction. Covata Limited (ASX:CVT) cancelled the acquisition of dataglobal GmbH from Wolfgang Munz on September 16, 2019.