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Excite Technology Services has completed its acquisition of CBIT Digital Forensic Services (CDFS) and is getting ready for a proposed capital raising.
Excite announced on the Australian Securities Exchange (ASX) on 8 October that it has executed final binding contracts for the acquisition of all of the capital of CDFS, with settlement expected “in the coming days”.
Following the settlement, CDFS will continue to operate as a division of Excite Group, still headed by its CEO, Zoran Iliev.
“This acquisition marks the beginning of an important journey for both Excite and CDFS,” said Excite CEO Bryan Saba.
“CDFS has already enjoyed a very strong September quarter. I welcome the opportunity to work with Zoran and his team as we bring their highly regarded expertise into our customer network and look to expand our service offering into their government and law enforcement customers.”
First announced in late June, the managed services provider said the final price includes $750,000 in cash and 100 million shares with an indicative price of $0.015 per share on settlement.
Additionally, a deferred cash payment of $750,000 will be payable on 1 July 2025 and up to a further $2.4 million will be paid in performance consideration, settled in a 50/50 split in cash and shares if CDFS achieves earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.8 million in the 12 months to 30 June 2025.
If CDFS earns more than the $1.8 million, an outperformance consideration of up to $800,000 will also be payable.
A day later, on 9 October, Excite requested a trading halt. The reason given for the request, according to an ASX statement, was for a proposed capital raising.
While no extra details were given about the proposed raising, the halt was requested to last up to 11 October.
If the capital raising takes place, this would not be the first time that Excite had looked to generate funds this year, as it signed a deal with Belgravia Group to provide an option of up to $2 million to strengthen its sales and AI capabilities.