Gentrack Group (NZE:GTK, ASX:GTK) acquired New Zealand software-as-a-service company Prospero Energy, trading as Factor, in a deal valued at NZ$24 million, according to a Monday filing with the Australian and New Zealand bourses.

The agreement also includes a potential NZ$10 million earn-out if the business grows its annual recurring revenue to about NZ$17 million within three years, per the filing.

The consideration will be fully funded from the company's existing cash reserves, with only a minimal impact on current-year revenue, the filing said. The transaction is expected to be earnings-accretive on a target-growth basis by fiscal 2028.

The deal was completed at the same time as the sale and purchase agreement was signed on May 15, the filing added.

Gentrack Group's Kiwi shares were up nearly 2% in recent Monday trade.