The deal sees Empired (ASX:EPD) acquire 100 percent of the issued share capital in Conducive, and involves the issue of five million fully paid ordinary Empired shares plus three cash payments.
In its statement to the ASX, Empired said the first cash payment of $3.148 million was due on contract completion - expected by the end of this month - with two milestone payments of $1.743 million and $1.909 million due 31 July 2013 and 31 July 2014 respectively, subject to performance criteria being met. Cash payments will be funded through finance facilities.
Empired Managing Director, Mr Russell Baskerville said the acquisition would be earnings accretive and Conducive was forecast to deliver approximately $9.5 million in revenue in the 2013 full year.
“Further it enhances our value proposition to existing clients and will allow Empired to capture a larger proportion of their planned budget in these areas.”
“I have personally met with a number of Conducive’s major clients who are delighted with the service they receive and welcome Conducive being supported by a larger organisation.”
Conducive is an application development and consulting business specialising in strategic consulting, project and programme management, Microsoft application development and Business Intelligence.
Baskerville said Conducive also had extensive domain expertise in the energy and natural resources sector including geological data management and modelling systems, a broad range of mining systems integration and consulting and development of mine scheduling and planning systems.