WT Financial Group Limited (ASX:WTL) agreed to acquire Synchronised Business Services Pty Ltd for AUD 6.9 million on March 14, 2022. Consideration comprises of AUD 2.4 million in cash and issue of 10.8 million WTL ordinary shares, a deferred cash consideration of AUD 1 million is payable 12 months after settlement, a retention payment of up to AUD 2.4 million is also payable if base fee revenue contributed by Synchron in respect of the 12 months to March 31, 2023, exceeds an agreed milestone as certified by the Company's auditor. As part of the transaction, WT Financial Group will assume around AUD 3 million of liabilities of Synchronised.

The transaction will be funded using the proceeds of AUD 3.04 million of placement of ordinary shares and a secured corporate debt facility of up to AUD 6.7 million with Altor Credit Partners. Synchron founders Don Trapnell and John Prossor will continue working in the business with Trapnell assuming the role of chairman of WTL's Synchron subsidiary. Completion is subject to satisfaction or waiver of a number of conditions precedent consistent with market practice for a transaction of this nature and is expected to occur this week.

The Acquisition is highly synergistic and accretive to earnings.