COSOL Limited (ASX:COS) entered into a binding share purchase agreement to acquire AssetOn Group Pty Ltd and OnPlan Technologies Pty Ltd from Anthony Large Holding Co Pty Ltd, Burckhardt Investments Pty Ltd and Geoff Boon Holding Co Pty Ltd for AUD 29 million on August 3, 2023. Under the terms, COSOL will pay for AssetOn, AUD 14 million in cash, issue AUD 3 million in shares and depending on the future performance of AssetOn, will pay earnout consideration of up to a further AUD 6 million (up to 50% of which payment being payable in shares, at COSOL?s election, with the balance payable in cash). For OnPlan, COSOL will pay AUD 4 million in cash, issue AUD 1 million in shares and an earnout consideration of AUD 1 million in cash. Shares issued as upfront consideration will be subject to voluntary escrow until the end of FY24. The upfront cash component will be funded through an institutional placement of 19.6 million new fully paid ordinary shares to raise gross proceeds of AUD 15 million and a AUD 4.6 million drawdown from COSOL?s expanded debt facilities. Earnout consideration, to the extent paid, will be funded from a combination of operating cash flow and available debt capacity, or a portion paid in scrip at COSOL?s election. The combined group reported revenues of AUD 28 million for the financial year 2023.

Completion of the transaction is subject to COSOL having undertaken an equity raising of at least AUD 11 million all other necessary regulatory, shareholder and other approvals being obtained. There will be no changes to COSOL?s Board of Directors or senior management as a result of the acquisition. COSOL will appoint nominees to the Boards of AssetOn and OnPlan. The transaction is expected to complete by September 1, 2023. The acquisition is expected to be low double-digit earnings per share accretive on a pro forma basis in FY24. Graeme McKellar, Lisa McKellar of Clairfield International acted as financial advisor to AssetOn Group.

COSOL Limited (ASX:COS) completed the acquisition of AssetOn Group Pty Ltd and OnPlan Technologies Pty Ltd from Anthony Large Holding Co Pty Ltd, Burckhardt Investments Pty Ltd and Geoff Boon Holding Co Pty Ltd for AUD 28.9 million on September 4, 2023. In conjunction with a successful capital raise of AUD 15 million to part fund the transaction COSOL is also pleased to report an expansion of its debt facilities with Westpac Banking Corporation to a total of AUD 25 million, an increase of AUD 8 million over the existing facility put in place in August 2022. This has been completed as part of the total acquisition funding arrangements.