Connexion Media Limited entered into an exclusive binding term sheet to acquire Security Shift Group for AUD 4.9 million.
January 09, 2018
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Connexion Media Limited (ASX:CXZ) entered into an exclusive binding term sheet to acquire Security Shift Group for AUD 4.9 million on January 10, 2018. Under the terms of the transaction, Connexion Media Limited will make an upfront investment of AUD 1.8 million in new shares in Security Shift Group, AUD 1.2 million via the issue of new shares and payment of up to AUD 2.01 million via the issue of new shares subject to sales pipeline conversion and scrip is allocated on a predetermined EBIT multiple 3.08. Connexion Media Limited will fully fund its acquisition of Security Shift Group through internal cash reserves, vendor scrip, debt finance and future earnings. Security Shift Group had EBIT of AUD 1.6 million in 2016. On completion of the acquisition, Security Shift Group shareholders, Chris Wright and Mark Culhane will continue with Connexion Media Limited. Wright will join the Connexion Media Limited's Board as a Director and Culhane will be employed in the role as Chief Information Officer.
The transaction is subject to approval by the shareholders of Connexion Media Limited, execution of a definitive sale and purchase agreement, employment / engagement agreement and share subscription agreement and Connexion Media Limited completing due diligence to its satisfaction of all legal, financial and technical aspects of Security Shift Group. If all of the conditions precedent are not satisfied on or before March 31, 2018, the transaction may be terminated by either Connexion Media or Security Shift Group.
Connexion Mobility Ltd, formerly Connexion Telematics Ltd, is engaged in providing connected car technology with a fleet and rental platform. Its platform offers a fleet management system for any dealership. It helps to manage dealership vehicles through short-term / long-term rentals, test drives, shuttles, pickup / delivery and concierge service. It offers mobility-toll management through automated toll use tracking, automated toll fee cost recovery, toll hardware (tags) in applicable regions, no software installation required, and itemized invoicing. It also offers solutions, such as shuttle management, contactless agreements, and express check-in and check-out. The platform tracks all damage electronically with photos, videos, and provides text and e-mail alerts, real-time fuel, odometer, location and maintenance information. It also helps to manage service loaners, courtesy vehicles, rentals and test drives.