Deals

Zenergy Power plc Acquires Synety Limited

Posted: 5th September 2012 09:25
Zenergy Power plc (AIM: ZEN.L) announces the conditional acquisition of Synety Limited ("Synety"), a cloud-based software and communications business.

Summary

Conditional acquisition of the entire issued share capital of Synety for:
  • Initial consideration of £75,000 cash and the issue of 1,477,106 New Ordinary Shares;
  • By reference to the Closing Price as at 4 September 2012, the initial consideration is valued at approximately £1.07 million; and
  • Deferred Consideration of up to 740,861 New Ordinary Shares, depending upon Synety reaching certain sales targets.
Synety is a software and communications business that has developed and operates a cloud- based communications service called CloudCall®
  • CloudCall is specifically designed to integrate with CRM platforms or other suitable software partners;
  • CloudCall gives organisations the ability to make, receive and record telephone calls from existing software such as email clients, web browsers, smartphones and CRM/ERP platforms;
  • Synety's strategy will be to focus on integrating and partnering with suitable software companies to sell CloudCall to their respective customer bases.
The directors believe that Synety's technology has first-mover advantage in the telephone segment of the CRM market
Mark Seeman and Graham Ward, both directors and shareholders of Synety, to join the board as Chief Executive Office and Non Executive Director respectively following Admission

The Acquisition constitutes a "reverse takeover" and requires Shareholder approval. Shareholder approval is also required to approve the waiver that has been granted by the Takeover Panel to the owners of Synety of the obligation that they would otherwise have to make a takeover offer for the Company under Rule 9 of the Takeover Code.

Proposed 1 for 20 Share Consolidation and proposed name change to Synety Group plc upon Admission
General Meeting, to be held on 25 September, convened for the purpose of considering the Resolutions necessary to implement the Proposals. It is intended that the Company will provide a demonstration of the Synety technology at the meeting.

Simon Cleaver, Executive Chairman of Zenergy,commented:

"As reported to Shareholders previously, we have been examining potential new investment opportunities which would take the Company in a fundamentally different and profitable direction. We are delighted today to be able to announce the proposed acquisition of a leading edge technology company which operates in a software segment with proven growth characteristics. The vast majority of CRM providers have inbuilt functionality to send, receive and record e-mail activity, but only a very limited number have similar functionality when it comes to telephone communication, which is where we see the potential in Synety."

An admission document ("the Admission Document") setting out details of the Proposals and giving notice of a General Meeting on 25 September 2012 to approve the Proposals is expected to be sent to Shareholders today and will be available on the Company's website www.zenergypower.co.uk.

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