8common Limited (ASX:8CO) has signed a Sale and Purchase agreement to acquire an established Real Estate Content Management Solutions provider.
The acquisition is expected to be completed by 8th May.
The acquisition will broaen 8common's North American client footprint to around 3,000 clients and is will drive strong up-sell opportunities.
It adds an important product platform WordPress offering for Asian client expansion, and additional products in the form of maps and IDX tool.
The acquisition should contribute $500,000 revenue and $200,000 EBITDA to the group annually, and be earnings accretive from the first year.
Consideration is a maximum C$850,000 made up of C$617,000 upfront, with the remainder being deferred amounts subject to future performance targets.
The acquisition is funded via the issuance of unsecured redeemable convertible notes from various sophisticated investors, including directors and management of 8common.
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