Transaction Highlights

The acquisition will be purchased for a total cash consideration of $10m, of which $8m is payable on completion of the transaction and $2m to be paid on the first year anniversary from completion. An additional $2m performance payment will be made should financial stretch targets be achieved in the first 12 months from completion. The acquisition will be funded with existing cash on the balance sheet.

Post completion, ELMO is expected to have net cash of $16.1m and excluding the contribution from the acquisition and associated transaction costs ELMO reaffirms FY18 prospectus guidance at $22.4m in total revenue and $2.7m in EBITDA. The acquisition is expected to be completed on or around 15 November 2017.