Cloudaron Group Berhad (KLSE:CLOUD) signed a sales and purchase agreement to acquire DACS Network Solutions Sdn Bhd from Edmund Low for MYR 7.8 million on March 30, 2018. As per terms, 0.1 million shares representing 100% stake in DACS Network Solutions Sdn Bhd will be acquired. The consideration comprises cash of MYR 2 million and 16.5 million new shares of Cloudaron Group Berhad. The shares and MYR 0.5 million cash will be issued within seven days after closing and balance cash consideration in three other equal tranches, subject to profit guarantee. The cash portion will be funded from internally generated funds. Post completion, DACS Network Solutions Sdn Bhd will operate as a wholly owned subsidiary of Cloudaron Group Berhad. The Proposed Realtors8 Acquisition and Proposed DACS Acquisition are not inter-conditional upon each other For the year ended December 31, 2017, DACS Network Solutions Sdn Bhd reported revenues of MYR 3.9 million, earnings before interest, tax and depreciation of MYR 0.95 million, profit after tax of MYR 0.7 million and net assets of MYR 1.2 million. The deal is subject to an application to be made to Bursa Securities for the listing of and quotation for the consideration shares, due diligence investigation by Cloudaron Group Berhad, approvals from third parties, approval from shareholders of Cloudaron Group Berhad in meeting due within two months from agreement date and any other relevant regulatory authorities if required. The transaction has been approved by the shareholders of Cloudaron Group Berhad at the Extraordinary General Meeting held on June 21, 2018. The deal is expected to be completed in the second quarter of 2018. As on May 14, 2018, Cloudaron Group Berhad has entered into a letter of extension with Edmund Low to amend the completion date to June 30, 2018. The proposed deal is expected to contribute positively to Cloudaron Group Berhad’s future earnings and earnings per share. Mercury Securities Sdn. Bhd. acted as financial advisor for Cloudaron Group Berhad. Cloudaron Group Berhad (KLSE:CLOUD) completed the acquisition of DACS Network Solutions Sdn Bhd from Edmund Low on July 17, 2018. All the conditions precedent of the transaction have been fulfilled and/or waived.