151 Annual Report 2024 5. Investment in subsidiaries and amounts due from/(to) subsidiaries (cont’d) Acquisition of businesses in 2024 (cont’d) Acquisition of business in United States (cont’d) (i) RFC Wireless, Inc (cont’d) Goodwill arising from acquisition The goodwill arising from the acquisition of RFC comprises the value of expanding and strengthening the Group’s market position in provision of radio communication business and solutions in the United States. (ii) Carlton Staffing In March 2024, a majority-owned subsidiary of the Group, Converge Resources, Inc acquired the business in Carlton Staffing (“Carlton”) for a consideration of USD 0.8 million (approximately $1.1 million). The acquisition allowed the Group to expand and provide staffing solutions to leading businesses and job seekers in the United States. The fair values of the identifiable assets and liabilities acquired as follows: Fair value $’000 Goodwill arising from acquisition 1,077 Cash paid on acquisition, representing net cash outflow on acquisition 1,077 Transaction costs Transaction costs relating to the acquisition is not significant. Goodwill arising from acquisition The goodwill arising from the acquisition of Carlton comprises the value of strengthening the Group’s market position in provision of staffing and recruiting services in the United States. Impact on the acquisition on profit or loss Since the acquisition date, Carlton has contributed USD 8,893,000 (approximately $11,878,000) of revenue. If the business combination had taken place at the beginning of the year, revenue contributed would have been USD 10,661,000 (approximately $14,226,000). Acquisition of business in Australia In February 2024, a wholly-owned subsidiary of the Group, CSE Uniserve Pty Ltd acquired 100% of the issued share capital in Linked Group Services Pty Ltd and Linked Constructions Pty Ltd (collectively referred as “Linked Group”) for a consideration of AUD 3.5 million (approximately $3.1 million). The acquisition allowed the Group to expand and extend its existing radio communication business and solutions to its customers in Australia. NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2024
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