Synectics is looking to expand its business in the Far East with the acquisition of Singapore-based surveillance company Coex Services Asia (CSA) in a deal worth up to £2.1 million.
The Warwickshire-based surveillance technology group has held a 20 per cent interest in CSA since 2004.
It has now acquired the remaining 80 per cent of share capital for an initial consideration of £1.8m, comprising £1.3m in cash, 101,403 ordinary shares in Synectics and the transfer of the group’s 20 per cent interest in a related company, valued at £0.1m.
Up to £300,000 will also be payable in cash dependent on the profit performance on CSA in the first two years following the acquisition.
CSA supplies surveillance systems throughout the Far East, primarily to the oil and gas sector, and reported pre-tax profit of £0.2 million on a revenue of £2.4 million, and net assets of £0.9 million, in its audited results for the year ending 31 December 2012.
As part of the terms of the acquisition, CSA directors and former principal shareholders Kenny Tan and Veronica Chua are to remain with the company for a minimum period of three years.
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.”
