Risk management and insurance broker, PSC Insurance Group (ASX:PSI) has provided an update on the performance of its acquisition target Paragon.
Consideration for the acquisition is due on 30 June 2020.
The company has previously advised that the calendar 2018 EBITDA of Paragon was £4.2 million pounds.
The initial payment to the vendors was based on that performance continuing.
Whilst full year results to December 2019 are still to be finalised, PSC expects the adjusted EBITDA for that period to be greater than £7.0 million pounds.
Based on this notional estimate, the first payments due in the current half would be £31.5 million pounds.
Shares in PSC Insurance Group (ASX:PSI) are trading 4.3 per cent higher at $3.13.