COSOL (ASX:COS) has announced the acquisition of Toustone Pty Ltd, an Australian data analytics firm, for up to $22.4m. The acquisition aligns with COSOL’s strategy to expand its asset management solutions and enhance data analytics capabilities, particularly in sectors such as transport, agriculture and infrastructure.
COSOL helps organisations in industries such as natural resources, infrastructure and utilities optimise their operations. The company offers technology-enabled solutions to improve efficiency, sustainability and profitability.
Toustone, founded in 2014, specialises in predictive analytics and decision intelligence, helping clients streamline data management and uncover operational efficiencies. Existing clients include major public transport operators in New South Wales and Victoria.
The deal includes an upfront payment of $12m, comprising $8m in cash and $4m in shares at a deemed price of $0.8828 per share. Additional payments of up to $6.5m in earnout and $3.9m in outperformance consideration are contingent on Toustone meeting profit and margin targets through 2026. COSOL expects the acquisition to be immediately earnings-per-share accretive.
COSOL Managing Director Scott McGowan highlighted the strategic value of the acquisition: “Toustone delivers outstanding insights and efficiency opportunities, which aligns perfectly with COSOL’s mission to optimise asset-intensive operations.”
The acquisition will be financed through COSOL’s cash reserves and an expanded debt facility with Westpac. Completion is expected in December 2024.
Shares in COSOL are trading 7.29% higher at $1.03.