Stakk (ASX: SKK) Completes US$63 Million ParaScript Acquisition

Stakk has completed its US$63 million (A$88.7 million) acquisition of US document-intelligence business ParaScript, a deal that more than triples the technology group’s pro forma revenue base while materially increasing debt and shareholder dilution.

The combined business generated unaudited FY2026 pro forma revenue of about A$45.24 million, comprising A$14.89 million from Stakk and A$30.35 million from ParaScript, based on management accounts.

ParaScript’s results will be consolidated from the completion date. The pro forma figures are illustrative and do not represent Stakk’s statutory consolidated financial results.

Deal Funded With Cash, Shares and Seller Debt

Stakk paid US$25 million in cash and issued US$18 million worth of fully paid ordinary shares to the vendors.

The remaining US$20 million was funded through a secured, interest-bearing seller note. The purchase price is fixed and does not include an earn-out.

Cash funding came from Stakk’s existing resources and a A$27 million institutional placement, under which the company issued 1.23 billion shares at A$0.022 each.

Placement investors also received one unlisted option for every four shares subscribed, exercisable at A$0.035 for two years.

Stakk issued a further 1.18 billion shares to ParaScript’s vendors at an attributed price of A$0.022 per share.

The company reported A$17.57 million in cash at June 30, before receipt of the placement proceeds and payment of acquisition consideration and transaction costs.

Seller Note Adds Leverage

The US$20 million seller note has a four-year term and carries annual interest of 10.8%.

Interest is payable quarterly, while principal will amortise through 16 quarterly instalments.

Stakk also clarified that earlier transaction documents had not fully described the note’s interest rate, guarantees or security package. Its July announcement and meeting notice had referred to the component as deferred cash consideration payable over four years.

The note is guaranteed by Stakk Limited and ParaScript and secured over substantially all assets of Stakk IQ and ParaScript, including Stakk IQ’s ownership interest in ParaScript.

A continuing default could result in accelerated repayment and enforcement against the secured assets. In that circumstance, Stakk could lose ownership and control of ParaScript while remaining liable for any shortfall.

Separately, Stakk has secured a A$5 million working-capital facility maturing on Jan. 5, 2027.

The facility carries A$500,000 of fixed cash interest and A$500,000 of equity consideration. The equity component comprises 25 million shares at A$0.02, subject to shareholder approval.

Management Targets A$55 Million Revenue

Stakk has set FY2027 objectives of about A$55.2 million in revenue and A$18.5 million in EBITDA, implying an EBITDA margin of roughly 34%.

The company stressed that the figures are management objectives rather than forecasts or formal guidance.

They assume anticipated integration and cost outcomes, as well as an Australian-dollar to US-dollar exchange rate of US$0.71.

Stakk said a substantial majority of the targeted revenue is supported by existing customer commitments, assuming contracts perform as expected and recurring agreements renew at historical rates.

The enlarged group serves more than 300 enterprise customers and processes more than 110 billion interactions annually across the US, Europe, the Middle East and Australia.

ParaScript Chief Executive Officer Emiliano Giacchetti has been appointed CEO of Stakk IQ and ParaScript.

His proposed appointment as group CEO of Stakk remains subject to shareholder approval at the company’s annual general meeting.