SYDNEY: TZ Limited has entered into a Heads of Agreement to acquire proptech company, Keyvision Holdings Pty Ltd.

TZ Chairman Peter Graham said: “TZ is delighted to announce its entry into the Heads of Agreement to acquire Keyvision. Their platform apps to Residential; Retail; Aged Care and Planned Communities are first class. Smart Lockers are integral to these proptech apps. This is a compelling acquisition from a CROSS-SELL point of view and allows potential global expansion for Keyvision. It is also expected to be strategically, synergistically, and financially compelling for TZ and its shareholders.”

“TZ’s focus has been on the corporate and educational sectors but wanted to explore opportunities back in the Residential market. It took us a while, but our analysis eventually found the Tenant App space. 

The Smart Locker integration was a standout. From there to an international search, then a short list of four.”

“The Board and certain key shareholders consider TZ undervalued, so any equity raise or dilution at these levels was ruled out. Therefore, the proposed acquisition has to be funded out of the combined cashflow of the two business.”

“Based on current modelling, TZ expects that operating cash flow generated by the combined enterprise over the next four years will be sufficient to both fund the deferred consideration payable and pay down the Company’s debt.”

“This will be an exciting journey for the Company and its shareholders. I want to thank my fellow Board members and the effort of John Wilson, our CEO, and a mention to Chris Kelliher (President of Telezygology, Inc) in the US, for all their hard work over the past 12 months to make this happen.”

John Wilson, TZ founder and CEO, said: “We started this search globally before narrowing to a select few for negotiations. It was the quality and extensive capability of the Keyvision platform, confirmed by their ability to win contracts over their international rivals, which made them a standout. They were well advanced in their commercialisation efforts and have built a prominent position in the Australian market already.”

Mark Davis, Keyvision founder and CEO, stated: “When approached by TZ, I was quickly impressed by the standard of their product, but it was their API capabilities that really shone out. It was far superior to most in the market. TZ’s already established global infrastructure, the corporate, financial, software and cloud management team and 24-hour technical support gives Keyvision the opportunity to quickly expand internationally.”

Under the terms of the HOA, the purchase price payable by TZ is $2.5M on settlement of the proposed acquisition – anticipated to occur on or before 31st December 2024.

Total instalments payments are capped at $7.5M and payable if Keyvision achieves annual revenue targets over the forthcoming 4-year period.