SYDNEY, AUSTRALIA: Spectur Limited (ASX: SP3) has entered into a binding share purchase agreement (SPA) with Coastalwatch Holdings for the acquisition of all of the issued capital in 3 Crowns Technology (3CT).

The consideration payable by Spectur Limited comprises $600,000 cash, and $250,000 in fully paid ordinary shares in the capital of Spectur.

3 Crowns Technology (3CT) is a technology company with a focus on helping people live better within their environment. They do this through the provision of environmental data (camera and other sensors), analytics and reporting to government and corporate sectors.

3CT solve problems in emergency services, smart cities, disaster management, public space management and environmental monitoring.

The 3CT business currently has 23 active customers with more than 80% of annual revenue ($1.3m in FY22) as recurring software fees (circa $1m in FY22). EBITDA for FY22 was approximately $59k and the business is debt free.

The assets and capabilities of 3CT will accelerate and expand the vision and strategy for Spectur Limited more efficiently and effectively, with lower risk than organic growth in these areas.

Spectur Managing Director, Gerard Dyson, said: “3CT is a synergistic and strategic acquisition that we initially approached more than 12 months ago. Their alignment with our vision, strategic goals, customer base and technology aspirations had lifted them high in our priorities.

Earlier in FY22 we were successful in integrating our technology with 3CT through a shared customer.”

“This transaction accelerates our R&D plans by 24 months or more in sensing and UI / UX expansion and truly creates an even greater technology moat around Spectur. This acquisition perfectly fits our goals of making communities safer and resonates with our core differentiated Sensing, Thinking and Acting platform.”

“3CT is a lean organisation as well, with 3 consecutive years of positive EBITDA generation. It is expected that with small investments in marketing and sales support from Spectur that revenue can increase sharply in the medium term, dramatically improving profitability.

When the opportunity to realise cost, revenue and other synergies across the broader group is achieved, this acquisition has the potential to substantially bring forward the date for consistent positive cash generation within the broader group.”

“Spectur has kissed a lot of frogs in the last 3 years. Careful review of tens of acquisitions, advanced discussions with a subset of these and substantial due diligence on two others in this period has characterized a deliberate ‘fussiness’.

3CT ticks a large number of boxes and we believe will add substantially and synergistically to the operations and strategic future of Spectur, creating shareholder value well in excess of the purchase price.”

Spectur Limited (ASX:SP3) is an Australian-based developer of security, surveillance and warning solutions powered by solar, IoT [Internet of Things], camera and cloud-based technology.

The Company owns the rights to its innovative hardware and disruptive cloud-based systems which are deployed to provide solutions to industries including government and utilities, and the building, construction, and civil sector.