Tasmea (ASX:TEA) executed a share purchase agreement to acquire Vertex Group, consisting of Vertex Power & Process and VTX Group Services, for an upfront consideration of around AU$9 million, as well as a contingent consideration, according to a Monday Australian bourse filing.

The upfront consideration consists of a cash payment of AU$6.5 million, after estimated purchase price adjustments, as well as the issuance of AU$2.5 million in Tasmea's shares, with 714,286 escrowed shares at AU$3.50 per apiece.

The contingent consideration consists of earn-out payments of up to AU$2.8 million in total, which will be payable for the fiscal years 2026 to 2028, subject to the Vertex Group achieving certain targets in each year.

Tasmea plans to fund the deal via a combination of cash reserves, existing finance facilities, the issue of Tasmea scrip, and deferred earn-out payments.

The deal is expected to be completed in mid-to-late July, subject to satisfaction of conditions precedent.

The group will form part of Tasmea's electrical services segments.