What did Vysarn Limited (ASX:VYS) announce regarding NWG Enterprises?

Vysarn Limited has entered into a binding share sale agreement to acquire 100% of the issued shares of NWG Enterprises, which operates as NewGround. The acquisition will be executed on a debt-free basis, with NewGround maintaining an agreed $6 million in working capital at the time of completion.

How much is Vysarn (ASX:VYS) paying for the NewGround acquisition?

The total consideration consists of up to 33 million Vysarn shares and $25 million in cash. The upfront payment component is valued at $30 million, comprising $8.33 million in cash and 28.6 million shares priced at $0.7576 each. The remaining balance will be distributed in deferred tranches based on performance milestones.

How are the deferred payments structured in the Vysarn (ASX:VYS) deal?

The deferred payments are structured as contingent tranches tied to NewGround meeting specific EBIT milestones over the next three years. These performance targets escalate over time, beginning at an EBIT of $7.5 million in Year 1 and rising to $8.5 million by Year 3.

What is the implied acquisition multiple for the Vysarn (ASX:VYS) transaction?

Based on NewGround’s assessed maintainable EBIT of $7.0 million, the deal implies an enterprise value to EBIT (EV/EBIT) multiple ranging between 4.3x and 5.9x. The exact final multiple depends on how many of the deferred performance targets NewGround successfully hits over the three-year earn-out period.

Will the NewGround acquisition increase earnings for Vysarn (ASX:VYS) shareholders?

Yes, the transaction is projected to be highly lucrative and approximately 25% earnings per share (EPS) accretive to Vysarn shareholders on a pro forma basis. This financial forecast is calculated utilising Vysarn's forecasted FY26 earnings figures.

How is Vysarn (ASX:VYS) funding the cash component of this acquisition?

Vysarn plans to fund the $25 million cash component through a combination of the company's existing cash reserves and by drawing down on new debt facilities. This strategy avoids relying entirely on new equity issuance to cover the cash portion of the purchase price.

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Vysarn acquires NewGround in major shares deal

Written by Liezl GambePublished Jun. 3 2026Last Updated Jun. 3 2026

Vysarn (ASX:VYS) announced the acquisition of NWG Enterprises after entering into a binding share sale agreement.

Under the terms of the agreement, Vysarn will acquire 100% of NewGround’s issued shares for a total consideration of up to 33 million Vysarn shares and $25 million in cash on a debt-free basis with an agreed $6 million in working capital at completion.

The transaction structure comprises an upfront payment followed by contingent deferred payments tied to NewGround's future EBIT performance over the next three years.

The upfront component consists of $8.33 million in cash and 28.6 million shares (valued at $0.7576 each), creating an initial equivalent consideration of $30 million.

Subsequent deferred cash and share tranches are dependent on NewGround meeting specific EBIT milestones escalating from $7.5 million in Year 1 to $8.5 million by Year 3.

Based on NewGround’s assessed maintainable EBIT of $7.0 million, the deal implies an enterprise value to EBIT multiple ranging between 4.3x and 5.9x, depending on performance targets met.

The deal is highly lucrative, with projections indicating it will be approximately 25% earnings per share accretive to Vysarn shareholders on a pro forma basis, utilising forecasted FY26 figures.

At the time of reporting, Vysarn’s share price was $0.96.