Staffing 360 Solutions Inc. (NASD: STAF), a staffing provider operating in the US and UK, reached an agreement with the seller of firstPRO, its professional staffing operation in Atlanta, to settle $2.16 million of remaining deferred consideration for a total of $1.125 million in a full and final settlement. Additionally, the license to use the firstPRO name, which would have expired in September 2019, has been extended indefinitely.

Funds for this transaction came from proceeds raised in a recent equity offering. Staffing 360 acquired firstPRO — which targets IT staffing and accounting and finance staffing — in September 2017 for purchase consideration of $8.5 million. According to a filing with the US Securities and Exchange Commission, $4.5 million was paid at closing; $825,000 was payable in quarterly installments of $75,000 beginning on Oct. 1, 2017; and the deferred consideration of $2.675 million together with the quarterly consideration would have been payable annually in three equal installments beginning on Oct. 30, 2018.

The transaction is expected to result in an income gain of approximately $840,000 in the first quarter, and the settlement will reduce cash outflows by $1.03 million over the next eighteen months, according to Staffing 360.