Team Internet Group plc (AIM:TIG) agreed to acquire Shinez I.O. Ltd for $54.10 million on March 19, 2024. Team Internet will acquire Shinez for an enterprise value of $41.8 million, on a net debt free basis and subject to customary adjustments for net working capital, payable in cash. Additional contingent consideration of up to $12.3 million will be due subject to Shinez achieving ambitious financial targets over the next two years, payable in cash.

Shinez reported $111 million in gross revenue $17.2 million in net revenue, and $10.4 million in adjusted EBITDA for the year ending December 31, 2023. The acquisition will be funded through a combination of cash reserves and the Revolving Credit Facility Agreement. $4.6 million, i.e., 11% of the enterprise value, will be retained in escrow for four years to cover for customary warranties and indemnification.

A graduated release schedule is planned for the escrow: up to 50% will be released on the second anniversary of the transaction's completion, followed by releases of up to 25% each on the third and fourth anniversaries. The acquisition is expected to be completed by late April/early May 2024, with all closing conditions anticipated to be satisfied, with the first full consolidation in Q3 2024.