Business
Acquisition of Semnet Pte Ltd
Acquisition of Semnet Pte Ltd.
About this update from Gstechnologies Ltd.
[{"type":"text","content":"\n\n6 December 2023\nGSTechnologies Limited\n(\"GST\" or the \"Company\" or the \"Group\")\nAcquisition of Semnet Pte Ltd\n \nGSTechnologies Limited (LSE: GST), the fintech company, is pleased to announce that the Company has entered into an agreement (the \"Agreement\") to acquire 66.67% of the issued share capital of Semnet Pte Ltd (\"Semnet\"), a cybersecurity company based in Singapore, for a total consideration of US$1.8 million, payable through US$0.8 million in cash and US$1.0 million in new shares in the Company, as detailed below (the \"Acquisition\").\nSemnet is a profitable cybersecurity business that will provide the Company with expertise and licences that the Directors believe are a critical component to the advancement of the Company's GS Money and B2B Neobanking operations. Cybersecurity is of particular importance to the Company's developing global Neobank ecosystem which has recently been enhanced by the acquisition of PAYPT finance Ltd, now renamed Angra Global, as announced on 15 August 2023.\nAngra Global started onboarding customers on 1 September 2023 and Semnet's cybersecurity expertise will enable the Company to build a dedicated cybersecurity team to support client onboarding and its operational activities, including the wider provision of white-label software solutions to global money service businesses. In addition, Semnet will continue to support and grow its client base in other sectors, providing an additional profitable revenue stream for the Group. Semnet is licensed by the Cyber Security Regulatory Office (CRSO) in Singapore. Further information on Semnet may be found at: https://www.semnet.co\nFurther details of the Acquisition\nThe Company has entered into the Agreement to acquire 66.67% of the issued share capital of Semnet from two of Semnet's directors, Choo Seet Ee and Zheng Kang Wen Mervyn (together the \"Sellers\"), for a total consideration of US$1.8 million in cash and new shares of no par value in the Company (\"Ordinary Shares\"). Completion of the Acquisition (\"Completion\") is subject, inter alia, to the agreement of a completion assets statement, which may require adjustment of the consideration upwards or downwards, and no material adverse change having occurred in the Semnet business. Completion is expected to occur two months following the en...