ReadCloud Limited (ASX:RCL) agreed to acquire Southern Solutions Training Services Pty Ltd for AUD 3.2 million on October 14, 2022. Upfront payment of AUD 1.35 million will be paid in cash AUD 0.975 million and shares AUD 0.375 million. Deferred payment of AUD 1.8 million will be paid in 75% in cash and 25% in shares.

Acquisition will be funded by existing cash reserves. For the year ended June 30, 2022, Southern Solutions Training Services Pty Ltd reported sales of AUD 2 million and EBIT of AUD 0.364 million. Jayne Marsh and Janina Puttick, will continue to work in Southern Solutions post completion of the acquisition.

The acquisition is subject to the satisfaction of customary conditions for completion, which are expected to be satisfied in the coming week.