SYDNEY, AUSTRALIA: LiveTiles Limited (ASX:LVT), a global leader in employee experience software for employee collaboration and communications, has entered into a binding agreement to acquire the remaining 80.03% of leading climate change consultancy business, My Net Zero following its initial 19.97% strategic minority investment in December 2021.

My Net Zero is a climate advisory, tech platform and marketplace enabling employers to involve and activate their people in positive climate action. With the climate crisis in the top three concerns of employees across all demographics, My Net Zero provides a framework of communication and support to respond to employee concerns and support their desired actions.

795 of the top 2,000 businesses1 in the world have made organisational Net Zero initiatives. Those top 2,000 businesses employ 89,000,000 people, yet very few of these businesses have action plans that are focussed on the employee engagement angle to help support net zero plans. In the post covid workplace, most businesses are battling with employee engagement and the environment is the number one area of concern for employees.

My Net Zero offers employers both the behavioural-change advice and practical tech platform to translate, connect and implement tangible action on climate change not only from employees but also other stakeholders (consumers, students, members).

Subject to revenue targets of $25 million being met over three years, aggregate consideration for My Net Zero is $10 million, should all shares in My Net Zero be purchased.

The acquisition will take place in tranches from existing My Net Zero shareholders, with the first tranche (bringing LiveTiles shareholding to approximately 55% of My Net Zero) to be paid via the issue of up to 68,310,127 ordinary class shares in LiveTiles, for an equivalent purchase price value of $4,268,399.36. LiveTiles shares are being issued at a price of the greater of $0.0625 per share, or the 30-day VWAP prior to the issue date. The ordinary shares issued for this transaction in relation to the first tranche will be from within LiveTiles’ existing capacity under ASX listing rule 7.1.

The LiveTiles and My Net Zero partnership was formed in 2021 following research into the Employee Experience market which found that employees would prefer to work for companies that had a greater purpose, with climate action being very high on people’s priorities.

This is propelled by national and international pressure for companies to target net zero emissions with Australia committing to a 2050 net zero goal and approximately 70% of ASX2002 companies having committed themselves to a sustainability strategy.

In September this year, LiveTiles and My Net Zero ran a major event in New York City during New York Climate Week called ScopeX, where executives from some of the largest US companies attended as part of their own sustainability plans to engage employees and other related parties in their Environmental, Social and Governance strategy.

The acquisition of My Net Zero and its combined product offering follows rapidly growing demand from existing LiveTiles customers and provides a unique opportunity to accelerate growth and perfectly align with the changing employee engagement needs of global leading enterprises.

LiveTiles Co-Founder and Chief Executive Officer Karl Redenbach said, “We have worked with My Net Zero for quite some time now with our relationship going from strength to strength. The acquisition of My Net Zero is timely and natural and allows us to expand our product offering in line with the demands of our customers to accelerate growth and attract larger highly profitable new customers.”

My Net Zero Founder and Chief Executive Officer Tim Hodgson said, “My Net Zero couldn’t be more pleased with the opportunity to join forces with LiveTiles to combine our respective strategic goals and provide customers and their employees a lot more value than we could each do independently.

Customers’ needs have been evolving very quickly through all the various challenges the world has thrown at them in the last two years, everything from the impacts of COVID, to employee engagement priorities. We are looking forward to contributing to the LiveTiles broader sustainability vision and making a significant global impact together.”