Synectics, announced that it has acquired the balance of the share capital in Coex Services Asia (CSA) for a maximum consideration of up to US$3.24 million (￡2.1 million). CSA is a private Singaporean company supplying surveillance systems in the Far East, primarily to the Oil and Gas sector.
Synectics, announced that it has acquired the balance of the share capital in Coex Services Asia (CSA) for a maximum consideration of up to US$3.24 million (￡2.1 million). CSA is a private Singaporean company supplying surveillance systems in the Far East, primarily to the Oil and Gas sector.
In CSA's audited results for the year ended 31 December 2012, it reported profit before tax of $310 thousand on revenue of $3.71 million, and net assets of $1.39 million. Synectics has held a 20 percent interest in CSA since 2004.
The Singapore subsidiary of Synectics, Synectic Systems (Asia), has acquired the remaining 80 percent of share capital in CSA for an initial consideration of $2.78 million, comprising $2.01 million, 101,403 ordinary shares in Synectics (valued at $620 thousand on 31 May 2013), and the transfer of the Group's 20 percent interest in a related company valued at $150 thousand. CSA currently has net assets of approximately $1.7 million and holds net cash of around $1.39 million. In addition, further consideration of up to $460 thousand 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.
“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,” said John Shepherd Chief Executive of Synectics.