• Infotrust to divest its Cloud & Communications segment to Aussie Broadband for $50m
• Divestment aligns with Infotrust's strategy to focus on cyber security and related technology services
• Proceeds to be used to strengthen balance sheet and fund earnings-accretive growth opportunities

Infotrust Ltd ('Infotrust') has entered into a binding share sale and purchase agreement to divest its Cloud & Communications segment, comprising 100% of Nexgen Investment Group Pty Ltd and its subsidiaries ('Nexgen'), to Aussie Broadband Limited (ASX: ABB) for total consideration of $50.0 million, subject to customary adjustments. This divestment aligns with Infotrust's long-term strategy to focus on cyber security and related technology services. The transaction includes upfront cash consideration of $44.1 million and up to $5.9 million of contingent consideration payable based on achieving either of Nexgen's FY26 or FY27 on target EBITDA performance. The divestment is a deliberate and strategic step in Infotrust's multi-year transformation, completing the company's pivot to being a focused cyber security technology provider. The proceeds will be deployed to lower net debt and fund Infotrust's pipeline of earnings-accretive growth opportunities aligned to its cyber-first strategy. The divestment of Nexgen will reduce Infotrust's Group EBITDA on a standalone basis, but the company is in various stages of negotiation of acquisitions which, if completed, are expected to offset this reduction and accelerate Infotrust's transition into higher-margin, cyber-first service lines.

The divestment of Nexgen represents an important step in accelerating Infotrust's growth in cyber security and secure managed technology. The company has a number of earnings-accretive acquisition opportunities and is looking to update shareholders if those processes become more certain.