2 June 2025
Tasmea Limited to acquire Vertex Group, expanding high voltage and portable power specialist service capabilities in the electrification industry
Investment Highlights
• Tasmea Limited to acquire Vertex Power & Process Pty Ltd and VTX Group Services Pty Ltd, together the “Vertex Group”.
• Vertex Group diversifies and deepens Tasmea’s offering in trade-based specialist service offerings in the electrification industry and maintains a strategic geographic competitive advantage.
• The purchase consideration consists of upfront consideration of approximately A$9 million, and contingent consideration of approximately A$2.75 million over three years subject to Vertex Group achieving agreed earn-out EBIT targets.
• Vertex Group earnings are expected to exceed A$2.5 million EBIT per annum under Tasmea’s ownership, from a pipeline of recurring revenue, a stable customer base and expected revenue synergies.
• There will be significant opportunities for Vertex Group to cross sell to Tasmea’s existing customer base, as well as other synergy opportunities in relation to shared customers.
• The acquisition is expected to be Earnings per Share accretive, enhancing shareholder value and reflecting the continued financial performance projected under Tasmea’s ownership.
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Upfront consideration:
o a cash payment of A$6.5 million (after estimated purchase price adjustments, which will be based on the finalised 31 May 2025 balance sheet);
o the issue of A$2.5 million in Tasmea shares (714,286 escrowed shares at an issue price of A$3.50 per share, subject to a price guarantee mechanism upon escrow release after 31 May 2026);
• Contingent consideration:
o earn out payments of up to A$2.75 million in total may be payable for the financial years FY26, FY27, and FY28, subject to Vertex Group achieving agreed EBIT targets in each year. This equates to a maximum of approximately A$0.9 million per annum.
