iSelect Limited (ASX:ISU) agreed to acquire a 49% stake in Cimet Sales Pty Ltd for AUD 26.6 million on February 27, 2022.Total consideration for the 49% investment in CIMET is comprised of AUD 20.7 million upfront plus up to a AUD 3.6 million performance based earnout plus AUD 2.24 million deferred consideration due 12 months post completion. The earnout will be payable if Cimet achieves defined volume and margin targets in the 6 months post completion,with the option of a pro-rata payment if performance targets are partially achieved. Consideration will be satisfied via AUD 14 million cash at completion with the balance, including the Earn-out and deferred amount to be satisfied via cash or Iselect scrip, at the election of Iselect.

The AUD 14 million cash component will be funded via 2 loan facilities from ANZ. iSelect Limited has a two-stage put and call option to acquire the remaining 51% of CIMET. L&L Partners acted as legal advisor to iSelect Limited (ASX:ISU).