ReadCloud (ASX:RCL) acquires Southern Solutions

• ReadCloud (RCL) acquires Southern Solutions, a national provider of training certificates in Early Childhood Education and Care
• The sale will be funded through RCL’s existing cash reserves, with an upfront payment of $1.35 million to be paid through a mixture of cash and shares
• Additionally, deferred cash and share payments of up to $1.8 million may be required based on FY23 and FY24 performance
• In the last financial year, Southern Solutions has since grown to achieve sales revenue of $2 million and earnings before interest and tax of $364,000
• Shares are trading 7.14 per cent higher to close at 15 cents each

ReadCloud (RCL) has acquired Southern Solutions, a national provider of training certificates in Early Childhood Education and Care.

The sale will be funded through RCL’s existing cash reserves, with an upfront payment of $1.35 million to be paid through a mixture of cash and shares.

Additionally, deferred cash and share payments of up to $1.8 million may be required based on FY23 and FY24 performance.

In the last financial year, Southern Solutions has since grown to achieve sales revenue of $2 million and earnings before interest and tax of $364,000.

RCL CEO and Co-Founder Lars Lindstrom said the acquisition represents a large growth opportunity for the company to utilise its technology to address a national skills shortage in the childcare sector.

“The industry has a high demand for training of new and existing teachers and strong government focus and funding, and we believe we can assist in solving this issue with the ReadCloud online training platform,” he said.

Shares were trading 7.14 per cent higher to close at 15 cents each.