Babylon Pump & Power Limited (ASX:BPP) entered into binding agreement to acquire Ausblast for AUD 6.4 million on February 25, 2021. The consideration is to be paid on cash and debt free basis. Under the terms of agreement consideration consist of an upfront cash payment of AUD 4.4 million and AUD 1.0 million in Babylon Pump & Power Limited shares (subject to a 12-month escrow and issued at Babylon’s equity raising price) and a deferred payment of AUD 1.0 million. The deferred payment is subject to the Ausblast business achieving at least AUD 1 million EBITDA in FY23 (to be settled in cash or shares at the election of Babylon with the issue of shares being subject to shareholder approval following satisfaction of the milestone). The acquisition will be funded from a short term unsecured bridge loan of AUD 3.5 million from Belgravia Strategic Equites Pty Ltd, an equity placement to raise approximately AUD 4.3 million and a share purchase plan that is to be underwritten to the amount of AUD 0.5 million (SPP), subject to shareholder approval. Babylon also intends to undertake a subsequent placement of up to AUD 2.0 million, which will be subject to shareholder approval, on the same terms as the placement. As of March 3, 2021, Babylon Pump & Power completed placement and raised AUD 4.3 million. The acquisition represents an FY20 EV/EBITDA multiple of 3.2x. Ausblast management team will continue to lead the Ausblast business under Babylon’s ownership. As of December 31, 2020, Ausblast recorded revenue of AUD 8.5 million and EBITDA of AUD 2 million. The transaction is expected to complete in March 2021. The acquisition will be highly accretive for Babylon Pump & Power. Argonaut acted as Financial Advisor to Babylon. Babylon Pump & Power Limited (ASX:BPP) completed the acquisition of Ausblast on March 5, 2021. Babylon will issue 40 million shares to Ausblast as a part of deal.