Business
Frontier, acquisition and group update
Frontier, acquisition and group update.
About this update from Science Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 6241T\n Science Group PLC\n 26 November 2021\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 26 November 2021\n \n \n \n \n \n \n \n \n Science Group plc\n \n \n \n \n \n Frontier Update, Acquisition\n \n \n \n \n \n and\n \n \n \n \n \n Group Trading Update\n \n \n \n \n \n \n \n \n Frontier Smart Technologies (\"Frontier\") was acquired by Science Group in 2019. Following a successful turnaround and integration, Frontier is now a very profitable business, contributing to the Group at a similar level to the Group's Services operations. As a result, and subsequent to a review of the Frontier strategy early in the year, Science Group has been investing in the Frontier business during 2021.\n \n \n \n \n \n The recent UK Digital Radio and Audio Review reaffirmed that radio continues to be a strong trusted medium delivering significant public value and highlighted the success of DAB. This UK experience is believed by Frontier to be replicated in other geographic markets. However like all technology markets, the product category is evolving and one of the growth opportunities identified in the strategy review undertaken in early 2021 was to develop the SmartRadio segment. SmartRadio combines DAB/DAB+, FM and Internet Radio providing access to tens of thousands of radio stations worldwide. In addition, the product category is also attracting diverse demographics as (i) audio streaming services such as Spotify, Deezer and Amazon Music become mainstream, and (ii) significant growth is now being seen in \"spoken word\" services, such as podcasts and audiobooks. \n \n \n \n \n \n In progressing the Frontier strategy, the Board has now completed the acquisition of Magic Systech Inc (\"Magic\"), a Taiwan-based company which specialises in Internet Radio technology. The acquisition enhances the Frontier proposition including a lower production cost technology architecture. For the year ended 31 December 2020, unaudited results for Magic reported revenue of US$2 million and a profit before tax of US$0.4 million. Magic will be integrated into Frontier but the Magic Systech brand will be retained. Consideration for the acquisition was US$4 million, paid in cash, although at completion Magic held cash of $1.9 million, gi...