Smart Parking (ASX:SPZ) entered into a binding agreement to acquire 100% of the issued capital in Peak Parking via an equity purchase agreement for an acquisition price of up to $36 million, according to a Monday Australian bourse filing.

The acquisition price consists of an upfront consideration of $32 million, payable with $26 million in cash and $6 million in Smart Parking scrip, as well as a sliding scale earnout capped at $4 million.

The earnout payment is based on the 2025 earnings before interest, taxes, depreciation, and amortization performance of Peak Parking.

The company will fund the cash portion of the consideration via a fully underwritten placement to new institutional investors and existing shareholders to raise around AU$32.2 million, a fully underwritten pro-rata accelerated non-renounceable entitlement offer to raise around AU$12.8 million, as well as a revolving credit facility with HSBC.

Peak Parking is a parking operator that provides parking services to businesses and clients with 134 locations across six states in the US.