Unieuro S.p.A. (BIT:UNIR) executed a share purchase agreement to acquire Covercare Srl for ?70 million on October 16, 2023. The purchase price is set at ?60 million, in addition to the net positive (cash) position on closing. Furthermore, the settlement of an amount of up to ?10 million as earn-out is also stipulated, at June 30, 2026, subject to the achievement of a specific EBITDA target in FY 2025/26.

The agreement stipulates the payment by Unieuro (i) as downpayment upon signing of the contract ?4.5 million, (ii) ?42.1 million on closing, (iii) ?10.0 million by October 31, 2024, (iv) a further ?3.4 million according to the due dates for certain declarations of guarantee. The Transaction is subject to the obtaining of the necessary authorisations pursuant to and in accordance with the applicable Antitrust regulation and shall take place by April 30, 2024. The executive directors will retain leading roles in the management and development of Covercare, partly so as to facilitate a rapid integration into Unieuro and ensure further business development.

The acquisition fits with Unieuro's "Beyond Omni-Journey" Plan, and in particular sharply accelerates the execution of the growth strategy in the services area, For FY 2022, The Covercare Group reported revenues of ?58.7 million, EBITDA of ?10.8 million (EBITDA margin of 18.4%) and a net profit of ?6 million. Unieuro was assisted by Equita SIM as financial advisor; ADVANT Nctm as legal advisor; KPMG for accounting due diligence; and PWC for tax due diligence. The Covercare Group was assisted by Ferriani Partners, accountants and lawyers, as tax advisor, the general counsel, lawyer Francesco Santarcangelo, and LCA law firm as legal advisor.