Zip Co Limited (ASX:Z1P) agreed to acquire remaining 73.75% stake in Payflex Proprietary Limited on September 1, 2021.

Zip Co Limited (ASX:Z1P) completed the acquisition of remaining 73.75% stake in Payflex Proprietary Limited for AUD 15.9 million on January 3, 2022. Total consideration of AUD 15.9 million comprised of a Cash consideration of AUD 6.5 million; 1,477,686 new Zip Co Limited shares issued, valued at AUD 2.4 million, based on the agreed post valuation enterprise value of AUD 21.6 million; Contingent consideration of AUD 6.4 million, payable subject to the satisfaction of prescribed performance milestones, which are based on growth targets relating to the achievement of total transaction volumes and net transaction margins for the twelve months performance period ending June 30, 2022. The contingent consideration is, payable by the issue of up to 1,053,608 Zip shares calculated on a 15-day weighted average price of Zip's shares on the ASX prior to the date of issue, with the balance payable in cash. As at June 30, 2022, Payflex has achieved the performance milestones and accordingly, the full amount will be payable by September 30, 2022; and Black Economic Entity (BEE) holdback amount of AUD 0.6 million, payable within twelve months from the date of acquisition.