DJ Sprue Aegis plc Acquisition
On 16 September 2016, for a total consideration of up to GBP2.8m in cash (excluding VAT) payable as to GBP1.0 million initially, together with GBP0.45m pre-paid licences paid to Intamac converted into consideration, and the balance over the next 12 months on the achievement of certain agreed milestones, Sprue acquired source code* and development rights to software developed by Intamac to enable its customers to connect and monitor Sprue’s whole range of wireless products over the internet.
Using its patent pending technology, Sprue has the ability to use the data it collects from Connected Homes products to not only detect fires, but using an advanced algorithm, to be able to identify properties at elevated risk of experiencing a fire in the future.
The Board believes that this is a major development for the Company as it significantly extends Sprue’s technical capability and provides an opportunity to sell a wide range of internet-enabled products and services as part of its new Connected Home Strategy with the potential of recurring revenues. In addition, based on expressions of customer interest received already, the Board is optimistic of commencing sales of internet-enabled products in Q4 2016.
As part of the transaction, Sprue has hired two of Intamac’s senior software development engineers to enable it to operate and maintain the software. Sprue has also contracted with Amazon to host its customers’ data on a secure server.
Commenting on the acquisition, Graham Whitworth, Executive Chairman said: “The Intamac Software Acquisition is a critical development for the long term sales potential of the Group.
Having our own in-house software opens up the prospect of revenue from new markets, new services and the potential of recurring revenues giving Sprue the ability to connect and monitor a vast installed network of its products over the internet.
The Intamac Software Acquisition is for up to a total cash consideration of GBP2.8m (excluding VAT) and will be funded from the Group’s cash reserves.”
Using its patent pending technology, Sprue has the ability to use the data it collects from Connected Homes products to not only detect fires, but using an advanced algorithm, to be able to identify properties at elevated risk of experiencing a fire in the future.
The Board believes that this is a major development for the Company as it significantly extends Sprue’s technical capability and provides an opportunity to sell a wide range of internet-enabled products and services as part of its new Connected Home Strategy with the potential of recurring revenues. In addition, based on expressions of customer interest received already, the Board is optimistic of commencing sales of internet-enabled products in Q4 2016.
As part of the transaction, Sprue has hired two of Intamac’s senior software development engineers to enable it to operate and maintain the software. Sprue has also contracted with Amazon to host its customers’ data on a secure server.
Commenting on the acquisition, Graham Whitworth, Executive Chairman said: “The Intamac Software Acquisition is a critical development for the long term sales potential of the Group.
Having our own in-house software opens up the prospect of revenue from new markets, new services and the potential of recurring revenues giving Sprue the ability to connect and monitor a vast installed network of its products over the internet.
The Intamac Software Acquisition is for up to a total cash consideration of GBP2.8m (excluding VAT) and will be funded from the Group’s cash reserves.”