Southern Cross Electrical Engineering Limited (ASX:SXE) agreed to acquire Mde Group Pty Ltd from Paul Liversidge and Greg Upton for AUD 10.6 million on May 13, 2024. The consideration consists of AUD 10.55 million in cash out of which AUD 5.55 million in cash at completion and the rest in following manner Earn-out: Deferred Consideration AUD 1 million in cash if MDE?s EBIT result for FY24 is equal to or greater than AUD 2.3 million AUD 1 million in cash if MDE?s EBIT result for FY25 is equal to or greater than AUD 2.6 million AUD 1 million in cash if MDE?s EBIT result for FY26 is equal to or greater than AUD 3 million If the above respective EBIT targets are not achieved, the Deferred Consideration cash payment each year will reduce on pro-rata basis in line with the actual EBIT achieved in that year, down to nil payment at a baseline EBIT level of AUD 1.5 million Earn-out: Outperformance Consideration 25% of MDE?s EBIT result for FY25 in excess of AUD 2.6 million capped at AUD 1 million in cash (ie an FY25 EBIT of AUD 6.6 million will achieve the maximum FY25 Outperformance Consideration of AUD 1 million) 25% of MDE?s EBIT result for FY26 in excess of AUD 3 million capped at AUD 1 million in cash (ie an FY26 EBIT of AUD 7 million will achieve the maximum FY26 Outperformance Consideration of AUD 1 million. Paul Liversidge and Greg Upton, will continue to manage the business on long-term contracts post-acquisition with fixed terms lasting beyond the earn-out periods.

Completion is expected to occur by the end of May 2024.