Xenith IP (ASX:XIP)
entered a deal to acquire the business and brands of the Watermark Group in late-August, this year. Completion of this transaction is expected today.
However, since entering into the deal, Watermark’s business performance in the September quarter has been softer than expected.
Xenith says that it has, therefore, revised the transaction structure – reducing the upfront purchase price from $19.5 million to $15.5 million, and an earn-out consideration of up to $5.6 million.
The company also says it’s confident that Watermark will be EPS accretive (before synergies) on an FY17 underlying basis.
Xenith IP reported a net profit of $6.5 million at 30 June 2016.