GO2 People Ltd (ASX:GO2) has entered a binding term sheet to acquire GO2 Skills & Training Pty Ltd, a registered training organisation (RTO).
The acquisition follows the alliance agreement entered into between the two companies during July 2018.
The RTO delivers industry-specific training and education to the construction and resources sectors.
No cash to be paid by GO2 People for acquisition
GO2 will not outlay any additional capital for the acquisition as it will be offset against the loan balance owing by GO2 S&T to the company at the time of acquisition, being $465,000.
GO2 People listed on the ASX in October 2017 after a successful initial public offering that raised $10 million.
The company is a leading provider of vertically integrated recruitment and building services to industry throughout Australia.
GO2 achieved its FY18 group revenue target of $45 million, an increase of 30% on FY17.