Synectics concludes Indanet acquisition

Synectics, a provider in the design, integration and control of advanced surveillance technology and networked security systems, is pleased to announce that it has now acquired 100% of the issued share capital of Indanet ahead of schedule following a renegotiation of the original terms of the acquisition of the business.

In July 2011 Synectics agreed to acquire 100% of the issued share capital of Indanet, a German provider of integrated surveillance and security management systems to the transport industry, for a maximum total consideration of US$13 million (€10 million). Under the original terms of the acquisition, consideration of $2.6 million in cash was paid on completion for an initial tranche of shares equivalent to 51% of Indanet's issued share capital, and further consideration of between $1.3 million and $10.4 million for the remaining 49% of Indanet would be payable in three tranches between 2013 and 2015, dependent on Indanet's profits for the period from completion to 31 May 2015.

The Group has agreed to vary the original acquisition terms so that the entire outstanding share capital in Indanet was purchased for a total consideration of $2.14 million in cash. Therefore Synectics now owns 100% of the shares of Indanet AG which it has acquired for a total consideration of $4.75 million, with no further earn out payments to be made.

John Shepherd, Chief Executive of Synectics, said: "We are delighted to take full control of Indanet at an earlier date than originally envisaged and at an attractive price. Among other benefits, this move will enable us to simplify the operating structure of Indanet, and to increase our investment in accelerating the sale of Synectics' branded systems into Germany and other markets."