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- Shares in Veris (VRS) were up as much as 30.5 per cent today after the company entered an agreement with Telstra Purple, a wholly-owned subsidiary of Telstra (TLS)
- Under the agreement, Telstra Purple will acquire 100 per cent of the shares in Veris’s wholly-owned subsidiary Aqura Technologies for $30 million in cash
- Veris will use the money from the acquisition to underpin the acceleration and execution of its digital and spatial strategy
- The acquisition is expected to be completed on February 28, subject to the satisfaction of certain conditions
- Shares in Veris are up 28.8 per cent and are trading at 7.6 cents
Shares in Veris (VRS) were up as much as 30.5 per cent today after the company entered an agreement with Telstra Purple, a wholly-owned subsidiary of Telstra (TLS).
Under the agreement, Telstra Purple will acquire 100 per cent of the shares in Veris’s wholly-owned subsidiary, Aqura Technologies.
Consideration for the acquisition is $30 million in cash, which is subject to customary net debt and working capital adjustments.
Veris will use the money from the acquisition to underpin the acceleration and execution of its digital and spatial strategy.
Completion of the sale is subject to certain conditions including the execution of new employment agreements and the retention of existing employees.
The acquisition is expected to be completed on February 28, subject to the satisfaction of these conditions.
Veris Chairman Karl Paganin said the sale of Aqura represented an important milestone in the history of Veris.
“Whilst Aqura has been growing strongly under Veris’ ownership, the Board is of the view that the timing is right to sell the business to provide the Aqura team with the opportunity to accelerate this growth further by accessing Telstra’s existing sales and customer channels,” Mr Paganin said.
“Following the sale of Aqura, Veris will be in a position to retire all bank debt and be well capitalised with a strong balance sheet and a significant net cash position.”
“This balance sheet strength will place Veris in a strong position to pursue its growth ambitions for Veris Australia and underpin the continued expansion of Veris Australia’s digital and spatial data-as-a-service strategy.”
Shares in Veris were up 28.8 per cent and were trading at 7.6 cents at 1:07 pm AEDT.
