P2P Transport Limited (ASX:P2P) entered into an agreement to acquire Black & White Cabs Pty Ltd. for AUD 20.1 million on May 15, 2018. Under the agreement, P2P Transport Limited shall pay AUD 4 million in cash and AUD 4.1 payable in the form of share issuance by P2P Transport Limited prior to completion. P2P Transport Limited shall also pay contingent payment of AUD 12 million in each of financial year 2019 and 2020 respectively. The cash consideration shall be funded through existing cash reserves and debt provided by way of a senior facility with one of the big four banks. Post completion, Greg Webb, Managing Director of Black & White Cabs Pty Ltd. will join the Board of Directors of P2P Transport Limited as an Executive Director. The transaction is subject to satisfactory due diligence and expected to complete on July 1, 2018. On August 1, 2018, P2P Transport Limited confirmed the completion of due diligence and received regulatory approvals. The transaction has now become unconditional. The transaction is expected to be earning per share accretive and deliver material cost savings in the medium term, which would be incremental to the EBITDA guidance of $3.5 million for financial year 2019. Gerard Belleville of Deloitte Financial Advisory Pty Ltd acted as financial advisers to Black & White Cabs Pty Ltd. P2P Transport Limited (ASX:P2P) completed the acquisition of Black & White Cabs Pty Ltd. for AUD 20.3 million on August 3, 2018. P2P Transport Limited paid AUD 4.27 million in cash which is subject to customary adjustments while P2P Transport Limited issued 4.46 million consideration shares and AUD 12 million contingent cash consideration in respect of financial year 2019 and 2020. Along with the responsibilities as Board member of P2P Transport Limited, Greg Webb, Managing Director of Black & White Cabs Pty Ltd will also lead the Black & White Cabs and network related services under the newly created service division. The transaction is expected to deliver an EBITDA of AUD 3.2 million in financial year 2019.