I might be suffering from confirmation biases here, but I think it is a fairly good deal.
Here is why?
For the Base Case Acquisition Cost (Profits of all 3 entities do not experience more than 25% earning growth yearly for the next 3 years till 2020 ), the acquisition will be done purely through the issue of new shares. Hence there is no strain on the cash of silverlake axis, neither will it need to takes on loan for this acquisition.
New shares issued is cents 71cents, a premium of about 17% over the last traded price of 60 cents.
The acquisition cost is 50 mio, and hence will result in a dilution of shares by less than 3%. If we assume zero profits growth, the 3 entities will add about 14% of 2017 NPAT. Hence it is yield acretive.
Even if profits collective is halved, it will still …