Secura unit to buy IT wholesaler Red Sentry for S$2.7m
Catalist-listed security solutions provider Secura Group has
announced a proposed buyout of IT wholesaler Red Sentry Pte Ltd for S$2.7
million in cash.
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Jacquelyn Cheok
18 June 2016
Catalist-listed security solutions provider Secura Group has announced a proposed buyout of IT wholesaler Red Sentry Pte Ltd for S$2.7 million in cash.
Secura said on Friday that its wholly owned subsidiary Soverus Technology Pte Ltd had, on Thursday, entered into a sale and purchase agreement (SPA) to acquire Red Sentry.
Secura said that the cybersecurity business of Red Sentry will complement and further boost the group's existing cybersecurity business, enlarging its market share in Singapore.
Secura added: "The directors believe that the proposed acquisition will create synergies within the group."
The proposed acquisition will be funded through Secura's internal resources, and is slated for completion on June 30, 2016.
The SPA is signed between Soverus and three vendors - Ong Hock Ling, Yew Lea Tiang Annie and Ng Chiang Chui.
Of the S$2.7 million consideration, about S$2.5 million will be payable by March 31, 2017. The remaining S$174,080 of the consideration will be payable to Ms Yew and Mr Ng, subject to both of them remaining in the service of the company for a one-year period starting from June 30, 2016.
Red Sentry, founded in 2000, is a wholesaler of IT products, including cybersecurity solutions, secure cloud solutions, as well as enterprise security and compliance solutions.
Its book value and net tangible asset value was about S$1 million based on the unaudited management accounts of the company for the financial year ended March 31, 2016. Red Sentry's net profit after tax was approximately S$292,000, said Secura.
No independent valuation was conducted on Red Sentry, Secura noted.
Secura, which debuted on the Catalist board of the Singapore Exchange in January, offers security guarding, cybersecurity, home-land security, security systems integration, security consultancy, executive protection, events security, as well as private investigation services.
The group had requested a trading halt in its shares before the market opened on Friday. It resumed trading close to noon on Friday. Secura shares added 2.9 per cent or 0.5 Singapore cent to close at S$0.175 on Friday.