SYDNEY, AUSTRALIA: COSOL Limited (COSOL, ASX: COS), a leading provider of enterprise asset management (EAM) solutions, has announced that it has agreed to acquire AssetOn Group, a specialist in asset management software and services for the natural resources and energy sectors.

The deal is valued at up to $29 million, comprising of $18 million in cash, $4 million in scrip and an earnout component of up to $7 million.

AssetOn Group serves major natural resource companies such as Rio Tinto, Glencore, Anglo American, BHP and BMA (BHP Mitsubishi Alliance). Energy and utility customers include Santos, AGL Energy, Arrow Energy and Sunwater. AssetOn Group’s service offering is underpinned by its proprietary software platform OnPlan, which is a Software as a Service (SaaS) product that is an end-to-end enterprise-grade digital system for efficiently building, maintaining and deploying asset strategy and work instructions for large industrial assets.

The acquisition will create a market leading asset management software and services group, accelerate COSOL’s core Asset-Management-as-a-Service (AMaaS) strategy, expand the Company’s blue-chip client base and build COSOL’s proprietary IP stack with proven software that has high customer retention.

COSOL does not believe that it needs to obtain shareholder approval in relation to the acquisition under the Listing Rules, however in accordance with Chapter 11 of the Listing Rules it has notified (and made submissions to) ASX regarding the acquisition. Subject to the outcome of ASX’s review of those submissions, COSOL does not intend to seek shareholder approval for the acquisition.

The acquisition is expected to be low double-digit earnings per share accretive on a pro forma basis in FY24, and implies a transaction multiple of ~6.0x EV / FY24F EBITDA.

Mark Rutledge, CEO of COSOL, said: “We are delighted to welcome AssetOn Group to the COSOL family. This acquisition strengthens our position as a leading provider of EAM solutions and services in the natural resources and energy sectors. AssetOn Group’s OnPlan platform complements our existing AMaaS offering and adds significant value to our customers. We look forward to working with the AssetOn Group team to deliver exceptional outcomes for our clients.”

Richard Johnson, Managing Director of AssetOn Group, said: “We are excited to join forces with COSOL, a recognised leader in EAM solutions and services. We share a common vision of delivering innovative and customer-centric solutions that optimise asset performance and reliability. By combining our capabilities and expertise, we will be able to offer our customers a more comprehensive and integrated suite of EAM solutions and services.”

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