Vysarn Limited announces acquisition of CMP Consulting Group and capital raise

Vysarn Limited (ASX:VYS) has entered into a binding Share Sale Agreement (SSA) to acquire CMP Consulting Group Pty Ltd (CMP), a consulting engineering company with a specific focus on the water industry. The acquisition involves an upfront cash consideration of $24.0 million and 10 million ordinary Vysarn shares, with further deferred consideration subject to CMP achieving Earnings Before Interest Tax and Depreciation (EBITDA) targets. Additionally, the company has received firm commitments for a single tranche placement of approximately 95.5 million new fully paid ordinary shares at an issue price of $0.40 per share, aiming to raise approximately $38.2 million.

Vysarn Managing Director and CEO, James Clement, on the transformative acquisition

The successful acquisition of CMP is expected to be transformative, providing national scale, expertise, diversification of clients, and a significant platform for Vysarn to grow. This, in combination with the proposed purchase of Waste Water Services Pty Ltd, positions the combined companies to benefit from the substantial investment in water infrastructure across Australia's populous states. Both transactions meet our strict investment criteria of being earnings accretive, with aligned management and a capital light business model. The broadened and diversified portfolio of high-quality clients places Vysarn in a strong position to deliver stable, long-term earnings growth for shareholders.

Summary of Vysarn's acquisition of CMP Consulting Group and capital raising

Vysarn Limited (ASX:VYS) has finalized the acquisition of CMP Consulting Group Pty Ltd, a move expected to bring national scale, expertise, and diversification of clients to the company. The acquisition, along with the proposed purchase of Waste Water Services Pty Ltd, positions Vysarn to benefit from the substantial investment in water infrastructure across Australia's populous states. The company's proforma FY2024 Net Profit After Tax (NPAT) is anticipated to deliver earnings per share accretion of greater than 20%, and when combined with WWS, the proforma FY2024 NPAT would deliver earnings per share accretion of greater than 35%. The capital raised through the placement will be utilized to fund the cash component of the CMP acquisition consideration, working capital/debt adjustment, associated transaction costs, ongoing development, and normal working capital requirements. Vysarn is well-placed to deliver stable, long-term earnings growth for shareholders, leveraging the transformative acquisition and the company's strategic positioning in the water industry.