Tasmea (TEA) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition expands Tasmea's high voltage and portable power service capabilities in the electrification industry, deepening its trade-based specialist offerings and regional presence.

• Vertex Group's strong customer base in utilities, mining, and renewables aligns with Tasmea's focus on essential infrastructure sectors.

• The deal supports Tasmea's strategy of acquiring culturally aligned, earnings-accretive specialist service businesses.

Financial terms and conditions

• Upfront consideration includes A$6.5 million in cash (subject to adjustments) and A$2.5 million in Tasmea shares (714,286 escrowed shares at A$3.50 per share, with a price guarantee mechanism).

• Contingent earn-out payments of up to A$2.75 million over FY26–FY28, subject to EBIT targets, with a maximum of A$0.9 million per annum.

• Total purchase consideration is approximately A$9 million upfront and up to A$2.75 million contingent.

• Acquisition funded through cash reserves, existing finance facilities, scrip, and deferred earn-outs from future Vertex Group cash flows.

Synergies and expected cost savings

• Cross-selling opportunities with Tasmea's existing customer base and subsidiaries, including high voltage engineering, powerline infrastructure, and industrial pumping solutions.

• Revenue synergies expected from recurring maintenance work and shared customers.

• Projected EBIT contribution from Vertex Group exceeds A$2.5 million per annum.