Synectics acquires balance of shares in Coex Services Asia

24th Jun 2013 12:16

Synectics, the advanced surveillance technology designer, has acquired the balance of the share capital in Coex Services Asia Pte (CSA) for a maximum consideration of up to 2.1m pounds. CSA is a private Singapore company supplying surveillance systems in the Far East, primarily to the oil and gas sector. In its audited results for the year ended December 31st 2012, CSA reported profit before tax of £0.2m on revenue of £2.4m, and net assets of £0.9m. The group has held a 20% interest in CSA since 2004. The Singapore subsidiary of Synectics, Synectic Systems (Asia) Pte, has acquired the remaining 80% of share capital in CSA for an initial consideration of £1.8m, comprising £1.3m in cash, 101,403 ordinary shares in Synectics valued at £0.4m on May 31st 2013, and the transfer of the group's 20% interest in a related company valued at £0.1m. CSA currently has net assets of approximately £1.1m and holds net cash of around £0.9m. In addition, further consideration of up to £0.3m will be payable in cash, dependent on the profit performance of CSA in the two years following acquisition. John Shepherd, Chief Executive Officer 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."Synectics' share price was up 0.62% to 402.50p at 11:47 on Monday.MF