- P10 ( NYSE: PX ) to acquire through its subsidiary, P10 Intermediate Holdings LLC, 100% of the outstanding membership interests in Westech Investment Advisors LLC, a California limited liability company, in exchange for $97M in cash and 3,916,666 membership units of P10 Intermediate Holdings, LLC which can be exchanged into 3,916,666 shares of P10 common stock, following applicable restrictive periods.
- Further, the terms includes additional earnout milestones as EBITDA grows, with a total of $70M available in earnout payments, in the form of cash or shares of P10 common stock, if EBITDA builds to $25M.
- Earnout hurdles are at $20M, $22.5M, and $25M of EBITDA.
- The company intends to use available cash and borrowings under its credit pact to fund the cash portion of the purchase price.
- In consistent with the P10 approach to long-term alignment, WTI employees will retain 100% of the carried interest generated by WTI funds.
- Furthermore, the existing WTI management team will continue to run day-to-day operations and oversee all investment decisions with no expected change in investment strategy.
- The deal to contribute more than $12.5M in Adjusted EBITDA in its first full year following the closing.
- The acquisition to be accretive to Adjusted net income per share in 2023 and beyond, while providing an additional piston to assist in long-term organic growth.
- The closing of the deal is expected to occur in the fourth quarter of 2022.
- A WTI firm overview presentation can be found on the P10 investor relations website HERE .
For further details see:
P10 to acquire Westech Investment Advisors in stock and cash deal