COSOL Boosts Asset Management Capability With Acquisition Of Core Asset Co

COSOL Limited (COSOL, ASX: COS) is pleased to announce a substantial boost to COSOL’s asset management consulting capability having entered into a binding Share Purchase Agreement (SPA) to acquire asset management consultancy Core Asset Co Pty Ltd (Core Asset).

Core Asset is an asset performance advisory firm that provides data-driven insights and solutions to clients to help improve the performance of their asset networks and their return on investment.

Under the SPA, COSOL will acquire all of the issued capital of Core Asset from vendor Spiral X Pty Ltd, a company related to Core Asset founder Joshua Old, for a total consideration of up to $6.1 million.

On acquisition, COSOL will pay the vendor approximately $2.9 million in cash and a further $2.5 million in COSOL shares, at a deemed issue price of $0.9847 per share, resulting in the issue of 2,538,844 COSOL shares.

A further earn-out consideration of $700,000 is payable to the vendor subject to EBITDA performance hurdles being met. Settlement is scheduled to take place later this month.

Based on the earn-out structure, which applies over calendar years 2024 and 2025, it is anticipated that Core Asset will contribute approximately $6m in revenue and approximately $1.6m in EBITDA in FY25.

Highlights

  • Agreement to acquire Core Asset Co, an asset management consultancy with a blue-chip client base in the resources, utilities and agribusiness sectors
  • Core Asset’s strategic asset management planning services to bolster COSOL’s Asset Management as a Service capability
  • Total consideration of up to $6.1m ($5.4m in cash and scrip on acquisition, deferred earn-out payment of up to $0.7m)
  • Immediately Earnings Per Share accretive

COSOL’s Chief Executive Officer Scott McGowan said the addition of Core Asset would accelerate the development and market growth of COSOL’s AMaaS.

“The Core Asset team is highly regarded in the asset management sector and will strengthen COSOL’s position as a global leader in unlocking asset potential for our clients,” said Mr McGowan.

 “COSOL’s focus is on building deep, trusted relationships with our customers where we can become central to digital transformation and business operation outcomes in capital-intensive, revenue-critical business functions.

 “Core Asset and its team provide a substantial boost to our capability and will accelerate the rollout of AMaaS across our loyal, blue-chip customer base.”

Mr Old, Core Asset’s Chief Executive Officer, said the Core Asset team was excited to be joining the COSOL Group.

 “Our ability to unlock business value from smarter asset management decisions and technical expertise, combined with the COSOL team’s track record and reputation for best-of-breed technologies will provide a fantastic platform for growth and increased client impact and value,” said Mr Old.

 

About COSOL

COSOL is a global Asset Management technology-enabled solution provider that optimises operations in asset intensive industries such as natural resources, energy and water utilities, public infrastructure and defence.

COSOL continuously invests in its ecosystem of software and services to help large-scale asset owners get more from their networks and to capture quantifiable business improvements measured in sustainability, efficiencies and profitability. Our mission is to help our customer achieve zero waste in their operations and supply chains using COSOL’s creative leadership and passion for asset management innovation.

Since listing in January 2020, COSOL has delivered profitable growth, strong operating cashflows and successful strategic acquisitions.

https://cosol.global/

 

 

 

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