Synectics plc Acquires Coex Services Asia
Synectics plc (AIM: SNX), a leader in the design, integration and control of advanced surveillance technology and networked security systems, is pleased to announce that it has acquired the balance of the share capital in Coex Services Asia Pte Ltd ("CSA") for a maximum consideration of up to £2.1 million.
CSA is a private Singaporean company supplying surveillance systems in the Far East, primarily to the Oil & Gas sector. In its audited results for the year ended 31 December 2012, CSA reported profit before tax of £0.2 million on revenue of £2.4 million, and net assets of £0.9 million. The Group have held a 20% interest in CSA since 2004.
The Singapore subsidiary of Synectics plc, Synectic Systems (Asia) Pte Limited, has acquired the remaining 80% of share capital in CSA for an initial consideration of £1.8 million, comprising £1.3 million in cash, 101,403 Ordinary Shares in Synectics plc (valued at £0.4 million on 31 May 2013), and the transfer of the Group's 20% interest in a related company valued at £0.1 million. CSA currently has net assets of approximately £1.1 million and holds net cash of around £0.9 million. In addition, further consideration of up to £0.3 million will be payable in cash dependent on the profit performance of CSA in the two years following acquisition.
Under the terms of the acquisition the CSA directors, and previous principal shareholders, Kenny Tan (Managing Director) and Veronica Chua (Finance Director) will remain with CSA for a minimum period of three years.
Commenting on the acquisition, John Shepherd Chief Executive of Synectics said:
"Development of our business in the Far East is a significant part of our strategy, and so we are delighted to bring CSA fully into the Group and secure the services of Kenny Tan and Veronica Chua to expand our operational hub in Singapore."