LONDON, UK: Eckoh Plc, the global provider of secure payment products and customer contact solutions, has entered into an agreement to acquire the entire issued share capital of Syntec Holdings Limited for a total consideration of £31 million through a combination of cash and new Eckoh shares.
The cash consideration payable under the acquisition is £24.7m with the balance of £6.3m payable in new Eckoh shares. £8.0m of the cash consideration is from Eckoh’s existing cash resources with the balance to be funded by a placing and a new debt facility.
To partially fund the cash consideration, company also announced a proposed non pre-emptive placing of up to 25.37 million shares at a price of 54 pence per share.
Syntec Holdings is an Ofcom-regulated UK network operator, based in the UK, with an extensive patent portfolio in the UK, US, EU and Australia.
Syntec is a provider of secure payment solutions (under the brand CardEasy) with additional telecom and contact centre services provided predominantly in the UK. As at 11 November 2021, Syntec has 31 employees, 29 of whom are based in the UK and 2 in the US, and serves over 100 clients, with 85% of its revenue coming from clients with payment solutions.
Syntec has clients in the US, UK and in broader markets across Europe. Notable clients include Wayfair, Miele, Staples, AIB and Hiscox with approximately 70% of new customers US based.
The Board believes that the acquisition of Syntec is highly complementary to Eckoh’s strategy of having a market leading position in Customer Engagement Data and Payment Security in a global market.