IWOW Technology (SGX:NXR) said the final consideration for its acquisition of the entire stake in telecommunications solutions provider Roots Communications has been set at about SG$17.4 million, according to a Wednesday filing with the Singapore Exchange.
The wireless internet of things solutions provider determined the amount by applying a six-times multiple to Roots' forward average net profit after tax of around SG$2.9 million over the relevant period ended March 31, keeping the sum within the SG$18 million cap.
After an initial tranche of SG$8.1 million was paid at completion in January 2023, the remaining post-completion payment of around SG$9.3 million will be settled 60% in cash and 40% in shares.
The share portion will be concluded via the issuance of around 11.2 million new shares at SG$0.3327 apiece.
Shares of the technology solutions company were up nearly 2% in Thursday trading.