NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2025 5. INVESTMENT IN SUBSIDIARIES AND AMOUNTS DUE FROM/(TO) SUBSIDIARIES (CONT’D) Acquisition of businesses in 2025 Acquisition of business in United States (i) Chicago Communications, Inc In April 2025, a wholly-owned subsidiary of the Group, CSE Crosscom USA, Inc acquired 100% of the issued share capital in Chicago Communications, Inc (“Chicago Communications”) for a consideration of USD 8.7 million (approximately $11.4 million). The acquisition allowed the Group to expand and extend its existing radio communication business and solutions to its customers in the United States. The provisional fair values of the identifiable assets and liabilities acquired as follows: Provisional fair value recognised on acquisition $’000 Customer relationships 1,251 Property, plant and equipment 2,374 Right-to-use assets 180 Contract assets 476 Inventories 1,902 Trade and other receivables 4,512 Cash and bank balances 412 Total assets 11,107 Trade and other payables (8,466) Tax payables (338) Total liabilities (8,804) Total identifiable net assets at fair value 2,303 Goodwill arising from acquisition 9,065 Cash paid on acquisition 11,368 Less: cash and bank balances (412) Cash paid on acquisition, representing net cash outflow on acquisition 10,956 Transaction costs Transaction costs relating to the acquisition of USD 210,000 (approximately $279,000) were recognised in the “administrative expense” line item in the Group’s profit and loss for the year ended 31 December 2025. Impact on the acquisition on profit or loss Since the acquisition date, Chicago Communications has contributed USD 11,771,000 (approximately $15,204,000) of revenue. If the business combination had taken place at the beginning of the year, revenue contributed would have been USD 17,937,000 (approximately $23,529,000). 150 CSE GLOBAL LIMITED
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