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Serial System to acquire Swift Value Business

Serial System has entered into a conditional sale and purchase agreement to fully acquire Swift Value Business.

The purchase consideration consists of the net tangible assets (NTA), plus a premium of S$10 million and a twenty per cent share of post-tax net profit for the financial years ending 31 Dec 2015, 2016 and 2017. As at 31 Dec 2014, Swift Value's unaudited NTA after adjustments worked out to S$3.01 million.

It will be funded by internal funds and/or bank borrowings, said Serial System.

Incorporated in Singapore, Swift Value is in the business of distributing printer accessories such as ink cartridges and toners.

Serial System said the company is of the view that the Swift Value is complementary to the group's business in the distribution of consumer electronic products. Swift Value will be able to leverage on its expertise as well as operational synergies and economies of scale, it added.