Projection technology developer Digislide Holdings has revealed more details of its planned $8 million acquisition of IPTV provider Australia LIVE TV (ALTV).
Around $7 million of the purchase price for the acquisition – which was announced this week – will be paid via a share issue.
The terms of the agreement specify that Digislide will pay issue 7.5 million shares up-front, the company said today.
Digislide will then issue up to 11.2 million shares subject to ALTV’s performance in FY11 and FY12. If ALTV meets or exceeds its targets, the full amount will be paid. But if it fails the number of shares will be adjusted by a commensurate amount to the shortfall.
The EBIT targets ALTV must meet are $3.2 million for FY11 and $8.1 million for FY12.