PERTH: Damstra Holdings Limited, an Australian-based global provider of integrated workplace management solutions, announces that it has entered into an implementation agreement to acquire Vault Intelligence Limited.
The acquisition will create a larger, more diversified, workplace management company with an expanded and highly complementary product range. Among the benefits of the combination, the merged group will be able to accelerate product innovation, including fever detection, facial recognition, remote, mobile and lone workforce solutions.
This is especially beneficial in a COVID-19 environment as a broadened Damstra offering is expected to fast track growth, including the ability to cross sell products across respective client bases, within Australia and New Zealand but also in international markets, particularly North America.
Johannes (Jan) Risseeuw, executive chairman of Damstra, said, “This merger of two leading workplace management providers represents a compelling opportunity for both sets of shareholders. Our due diligence process has confirmed the material strategic, operating and financial synergies. The respective technology stacks are complementary and there will be a focus on integration of R&D teams to drive an enduring culture of product innovation.”
Mr Risseeuw added that, if the scheme is implemented, employee numbers in R&D are expected to rise to 73.
Christian Damstra, CEO and Managing Director, said, “Since we listed on the ASX in October last year, Damstra has continued to deliver on its vision to create a truly great Australian global technology success story. Our solutions reduce and manage workplace risks for clients across sectors including mining, construction and engineering, and more recently education. The advent of COVID-19 has heightened these challenges for employers, in turn driving structural demand for our solutions.”
If the scheme is implemented, client numbers are expected to increase from 500 to 850 and user numbers would rise from 400,000 to 550,000, providing benefits from increased sector and revenue diversification.
Mr Damstra added, “Our organic growth outlook remains strong but an acquisition such as Vault represents a low risk and transformational step to gain increased scale and diversification. These and other benefits will allow Damstra to accelerate innovation and our international expansion.
“A great example of the complementary fit and cross selling opportunity will be the inclusion of Vault remote tracking and lone worker products such as Soloin the Damstra product module.”
The Vault board has unanimously recommended that its shareholders vote in favour of the Scheme, in the absence of a superior proposal and subject to an Independent Expert Report concluding that the Scheme is in the best interests of Vault shareholders.
David Moylan, CEO and Founder of Vault, is to remain within the company, with a focus on developing and expanding global channel partnerships for Damstra.
Mr Moylan, who will work closely with and report into Christian Damstra, strongly supports and welcomes the transaction: “It has been apparent from an early stage that our companies and leadership share a common vision with high quality technology platforms. With the opportunity to integrate resources and knowledge, the combined product offerings and market reach will be formidable.”
“The transaction will also provide the option for our shareholders to continue the journey, whilst benefiting from the value creation that is expected to arise from merging with Damstra. Uniting the product range and our people under the one banner has the potential to create significant value for our shareholders, clients, partners and employees. I am very excited to work alongside Jan and Christian and about where the combined business will take us.”