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DeClout to buy security systems firm for S$3m
INFORMATION technology firm DeClout's subsidiary Beaqon Pte Ltd has entered into a sale-and-purchase agreement to acquire a 75 per cent interest in TJ Systems, a company that supplies and instals security electronic systems, for S$3 million.
Beaqon entered into the agreement on Thursday with TJ Group Holding - the vendor - and Leow Chin Bee - guarantor and director of the target and vendor - for the acquisition which will be satisfied by S$1 cash (upon completion of the proposed acquisition) and issue of 15 million new DeClout shares at 20 Singapore cents a share.
In a statement, DeClout said the acquisition will complement Beaqon's existing distribution business in the region and create cross-selling opportunities for the group's wired and wireless products in the telecommunications and data centre infrastructure vertical.
Based on the unaudited management accounts for the period from April to November 2015, TJ Systems made a pre-tax profit of S$148,000 and its net tangible assets as at end-November 2015 stood at around S$403,000.
DeClout shares closed unchanged at 20 Singapore cents on Thursday.