The war-chest deployed on some attractive M&A When we last wrote, we highlighted that NET’s £34m net cash could be used on M&A to augment its proven organic growth engine (we forecast 11% y/y organic revenue growth for FY25). Today’s acquisition is exactly that, adding £3.4m ARR, increasing the UK council customer base by 31% and adding an automation product that presents cross-sell opportunities and makes NETs offer that much stickier. The incoming management team are well incentivised by a two-year earnout (and a further year of lockup) if they can achieve a £5.2m ACV, which of course, would benefit NET from materially higher earnings, offsetting the added cost. The initial consideration is at a modest price of 2.4x FY24 ARR, if the earnout is achieved this reaches 2.5x ARR. All in all, a good use of cash that makes NET a better proposition.