EDU Holdings Limited (ASX:EDU) entered into an agreement to acquire Care Plus Training Pty Ltd for AUD 6 million on June 2, 2022. The consideration will be satisfied with cash. EDU will pay AUD 4.5 million upfront for 75% of the shares (Initial Payment) with a further AUD 1.5 million payable in 12 months for the remaining 25%.

The Initial Payment is subject to typical net debt and working capital adjustments. The Deferred Component is not subject to any performance milestones or working capital adjustment. EDU Holdings also Secured commitments for acquisition and working capital funding via two-tranche placement to raise AUD 6.0 million.

The consideration representing an acquisition multiple of approximately 4.6x normalised CY21 EBITDA of AUD 1.3 million. Care Plus generated revenues of AUD 4.1 million in calendar year 2021. The acquisition is subject to satisfaction or waiver of a number of conditions precedent, and is expected to complete in third quarter of 2022.

Transaction is expected to close in secod quarter of 2023.