Grafenia makes amendment to terms of Image Everything acquisition

26th Sep 2018 11:33

(Sharecast News) - Grafenia has agreed on a variation to the terms of its acquisition of Image Everything in order to incentivise the target's vendors to remain with the group for a longer period.Grafenia will change the potential earn-out of £600,000 for a fixed additional deferred consideration of £550,000, payable in cash to be paid in 12 monthly instalments starting 30 September 2019.Under the original terms of the acquisition, approximately one-third of the earn-out would have been payable immediately - with the remaining two thirds payable in September 2019.Grafenia also noted that, as was in the case of the earn-out, the deferred consideration was conditional on Neil Cousins and David Brunt, two of the vendors of Image, being employees of the group until 31 August 2020 - the final instalment date of the deferred consideration.Following the variation, Grafenia expects the total consideration for Image to be £2.76m, with £1.15m satisfied in cash on completion, £1.06 covered by secured vendor loan notes and the remaining £550,000 being made up by the unsecured deferred consideration.As of 1130 BST, Grafenia shares had climbed 6.25% to 12.75p.