HMC Capital Limited (ASX:HMC) agreed to acquire Payton Capital Ltd for approximately AUD 120 million on May 24, 2024. The consideration consists of AUD 87 million in cash and AUD 28.50 million in common equity as well as earnout consideration of AUD 16.5 million. As part of the consideration, AUD 115.5 million was paid towards common equity.

To support the Acquisition, HMC Capital Limited is undertaking a AUD 100 million fully underwritten institutional placement and a non-underwritten Security Purchase Plan to raise up to approximately AUD 30 million. The transaction is expected to reach financial close in July 2024. Acquisition is expected to be immediately earnings accretive.