Australia's InvestSMART Group Ltd secured an option to acquire online cash management platform the Term Deposit Shop Pty. Ltd. and related entities.
InvestSMART, an investment advisory company, said it can exercise the option after the third anniversary and before the fourth anniversary of the option grant date, June 12. It will pay a nonrefundable deposit of A$250,000 to the Term Deposit Shop to be used as working capital to grow the platform's business.
Once the option is exercised, the company will pay shareholders of the target company about A$1.8 million in cash and A$2 million in InvestSMART shares. The number of shares will be determined by the weighted average price of InvestSMART shares in the three-month trading period prior to the completion date of the acquisition.
InvestSMART will also be entitled to 50% of any revenue received on clients introduced by the company to the Term Deposit Shop during the option exercise period. The revenue share will continue if the option is not exercised.
