COSOL shares (ASX:COS) gained 5.73% in trading today, as the company announced its acquisition of Toustone Pty Ltd, a data analytics company based in Australia, for an amount of up to $22.4 million. This strategic move underlines COSOL’s intent to amplify its capabilities in asset management and data analytics and moves the share price green on a YTD basis.
Toustone, founded in 2014, is well-recognized for its focus on predictive analytics and decision intelligence. This acquisition aligns with COSOL’s broader strategy to bolster its services in optimizing operations across industries such as natural resources, infrastructure, and utilities.
The financial details of the acquisition reveal an upfront payment of $12 million, composed of $8 million in cash and $4 million in COSOL shares. Additionally, there are potential future payments amounting up to $10.4 million. These additional payments are contingent on Toustone meeting specific profit and margin targets.
COSOL Managing Director, Scott McGowan, highlighted the acquisition’s strategic importance in enhancing their services for asset-intensive operations. The acquisition is forecasted to be immediately accretive to COSOL’s earnings per share, which may reassure investors about its near-term financial impact.
The acquisition will be funded through COSOL’s existing cash reserves combined with an expanded debt facility arranged with Westpac. Following the announcement, COSOL’s share price experienced a boost, rising by 7.29% to $1.03, indicating investor approval of this strategic expansion.
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This acquisition signifies COSOL’s commitment to fortifying its position in the data analytics sector, enhancing its ability to deliver cutting-edge solutions and optimally manage client assets. As COSOL progresses with integrating Toustone’s capabilities, stakeholders will be keen to observe the resultant synergies and their implications on COSOL’s future performance.
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