Key points
- Vysarn to acquire Welltech for total consideration of $60.0m
- Upfront consideration of $50.0m and deferred consideration of $10.0m
- Vysarn to raise approximately $65.3m through placement of new shares
- Acquisition expected to be 37.3% EPS accretive
Full summary
Vysarn Limited has announced the acquisition of Technologies International Group Pty Ltd (Welltech) for a total consideration of $60.0 million. The acquisition includes an upfront consideration of $50.0 million and a deferred consideration of $10.0 million payable over three years, contingent on Welltech meeting agreed EBITDA levels. The upfront consideration comprises $37.25 million in cash, agreed growth assets, and $12.75 million in Vysarn shares. To fund the acquisition, Vysarn plans to raise approximately $65.3 million through the issue of 62.2 million new ordinary shares at $1.05 per share. The acquisition is expected to contribute $33.2 million in revenue, $14.0 million in EBITDA, and $11.8 million in EBT on a pro forma FY26 basis, and is anticipated to be 37.3% EPS accretive. The transaction is subject to due diligence, funding, and other customary conditions.
Guidance
Pro forma FY26: $33.2m revenue, $14.0m EBITDA, $11.8m EBT, 37.3% EPS accretion
Outlook
Vysarn expects the acquisition of Welltech to enhance its water management capabilities and contribute positively to its financial performance.