• Acquisition of additional 14.08% stake in Fleet Network for $23.9 million
• Transaction expected to be immediately 5.1% accretive to EPSA in FY25
• Strengthens alignment and interest with COG group strategy

COG Financial Services (ASX: COG) is a leading finance broker aggregator and equipment leasing business for small to medium enterprises (SMEs) in Australia. The company operates through three key segments: Broking and Aggregation, Novated Leasing, and Asset Management/Lending. COG has an estimated market share of approximately 25% of the Australian asset finance broking and aggregation market and has experienced consistent growth through both organic and inorganic initiatives. In FY25, COG performed strongly, posting A$363.5 million in revenue and A$24.0 million of NPATA to shareholders. The company's Novated Leasing segment has delivered outstanding results, and COG is looking to continue growing this business through both organic and inorganic avenues. COG is now undertaking an equity raising of A$20.0 million via an Institutional Placement to fund the acquisition of an additional 14.08% stake in Fleet Network, a leading provider of novated leasing and salary packaging services. COG currently owns 78.30% of Fleet Network and is acquiring the additional stake from AWSIG/E-Mutual for A$23.9 million, with the balance of the shareholding to remain with Fleet Network management. The transaction is expected to be immediately 5.1% accretive to COG's EPSA in FY25, aligning shareholder interests and supporting long-term growth. COG will continue to remain active in the identification of further strategic acquisitions at the right price to add to the organic trajectory of its business segments.

The acquisition of EasiFleet in September will contribute A$5.7 million EBITDA in FY25 on a pro-forma basis, with an additional A$3.9 million FY25 EBITDA from the increased stake in Fleet Network on a pro forma full year basis, representing a total increase of 25% in FY25 EBITDA to COG shareholders.

The Novated Leasing segment continues to deliver outstanding results, and COG expects ongoing organic growth as it continues to capture opportunities driving uptake with current partners, assisted by current government incentives on electric vehicles. COG will continue to remain active in the identification of strategic acquisitions (at the right price) to add to the organic trajectory of its business segments. COG is also continuing to invest in key operational areas, particularly in functional improvements within the broker aggregation space and on cyber security.