Smart city solutions provider SenSen Networks (ASX:SNS)
has sealed a deal to acquire anti-theft surveillance specialist Scancam Industries for a total consideration of up to $10.6 million.
The payment package is made up of a $6.5 million upfront cash and scrip consideration and a performance-based earn-out of up to $4.1 million
The upfront payment consists of a cash offer of $1 million and $5.5 million worth of ordinary shares in SenSen. This component is pending shareholder approval.
The earn-out component could generate as much as $4.1 million in either cash or equity in SenSen, on the condition that Scancam satisfies the objective of reaching $3 million for its audited accounting rate of return (ARR) within a two-year period.
Scancam provides anti-theft solutions to service stations, utilising AI technology to detect and prevent fee evasions and drive-offs from petrol stations. The smart fuel security firm’s software analyses CCTV camera footage to identify offenders for law-enforcement purposes and financial losses mitigation.
SenSen’s Chief Executive Dr. Subhash Challa commented on the acquisition : “This is an important strategic acquisition for SenSen, a move that not only aligns to our ARR generating growth plans for FY22 and beyond, but also provides a strong foundation and impetus to move into the broader retail business vertical."
The $77.7 million data fusion specialist considers the integration of Scancam’s complementary products as an entry into the US$60 billion counter-theft solutions industry. The purchase of Scancam allows SenSen to expand into the fuel retail sector, attaining the anti-fuel theft company’s high-quality customer base.
On the other hand, Scancam considers SenSen’s infrastructure and technologies to be highly beneficial to the company’s growth strategy. Scancam hopes that the transaction will upgrade its customers portfolio from 250 to around 6500 service stations.
Shares in SenSen Networks (ASX:SNS)
last traded at 15 cents