Stealth Global Holdings Limited (ASX:SGI) agreed to acquire United Tools Limited for AUD 1.27 million on January 12, 2022. As per terms, Stealth Global shall pay AUD 24,000 cash plus a deferred market subsidy of AUD 1.25 million over two years, 50% payable in March 2023 and the balance in March 2024. UTL FY21 revenue AUD 8 million, EBITDA AUD 0.3 million.

Assets to be transferred to Stealth on completion includes AUD 1.22 million net cash. The transaction is subjected to UTL shareholders approval. The shareholder approval has been received as of February 28, 2022.

The transaction is expected to complete on March 1, 2022. As of February 28, 2022, the transaction is expected to close Mid-March 2022. The transaction is expected to be accretive to adjusted earnings in the first year after closing.