EUO: this is for anyone who had concerns about the term "net revenue" in the announcement of the finalization of the deal. When I read that, I was concerned that instead of the total value of the contract, EUO was only going to get 5% of whatever profit was left over after expenses.
THIS IS NOT THE CASE.
In the Purchase Agreement, in the definitions section the definition for "Net Revenue" is as follows:
"Net Revenues" means, for any period, the aggregate gross revenues actually received by GFI and any of its direct or indirect Subsidiaries, or any Affiliate of Buyer or SICPA SA and its or their successors, determined on a consolidated basis in accordance with IFRS, pursuant to any, ...
And it goes on to list various conditions.
Note at the end of the definition, it indicates that Revenues shall not include any revenue derived from (a) any renewals or extensions or amendments in price or otherwise of any Contract in force at the date of this Agreement, which means that if any of the contracts they currently have are extended, their revenue will not appear as a percentage received by EUO.
After reading through the contract this weekend, I am convinced that this is an incredibly good deal. For anyone who hasn't seen Zen's post on potential revenues, it's worth reviewing:
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