Wellcom Group Limited (ASX:WLL) entered into negotiations to acquire the assets of thelab, LLC for AUD 7.2 million in cash on February 26, 2014. The acquisition will be fully funded out of cash reserves. The purchase price equates to an EBITDA multiple of approximately 3.5 times. Thelab had annual revenues of AUD 14.5 million. The acquisition is anticipated to complete on March 1, 2014. After transaction costs, the transaction is expected to be modestly earning per share accretive in fiscal year 2014, and strongly accretive thereafter.


Wellcom Group Limited (ASX:WLL) completed the acquisition of the assets of thelab, LLC on March 1, 2014.