LONDON, UK: GSTechnologies Limited (LSE: GST) has entered into an agreement to acquire 66.67% of the issued share capital of Semnet Pte Ltd, 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 GST.

Semnet 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.

Angra 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

The remaining 33.33% outstanding shares in Semnet are owned by Ong Siew Phek (23.33%) and Lam Pek San (10%).  Ong Siew Pek is the spouse of the Company’s Executive Director and CEO, Jack Bai. 

As Ong Siew Pek is a related party of a director of the Company, the Company considers the Acquisition to be a Material Related Party Transaction as defined under DTR 7.3.6.  The Company’s Executive Director and CEO, Jack Bai, has therefore not participated in the GST Board resolution to approve the acquisition and the Company’s independent directors consider that the terms of the Acquisition are fair and reasonable from the perspective of the Company and its independent shareholders.

In its most recently published unaudited accounts, to 30 September 2022, Semnet had a turnover of US$4.22 million and reported profit before tax of approximately US$0.21 million.

Tone Goh, Chairman of GST, Chairman of GST, commented: “This strategic acquisition represents a further important step in the Company’s journey.  Our commitment to innovation and excellence remains unwavering, and having inhouse cybersecurity expertise and capability is important as we continue to build a B2B Neobank providing next-generation digital money solutions. We look forward to providing updates in due course on the the progress of this acquisition and the subsequent enhancements it brings to our fintech offerings.”