SmartSpace announces the acquisition of Space Connect and £3.44 million Placing
SmartSpace Software plc, (AIM:SMRT) the leading provider of 'Integrated Space Management Software' for smart buildings, commercial spaces and hospitality announces that it has agreed (conditional on Admission, as defined) to acquire the entire issued share capital of Space Connect Pty Limited (“Space Connect”) for a total consideration of AUD 6.0 million (approximately £3.2 million), to be satisfied by the issue of up to 2,026,234 ordinary shares of 10 pence each in the capital of the Company (the “Consideration Shares”) and cash of approximately £1.6m (the “Acquisition”).
Summary highlights of the Acquisition:
- Cloud based software, fast to deploy platform
- Room booking, desk management, visitor management, catering and workspace analytics
- Software integrations with Microsoft Exchange, Google, Skype, Uber, Zoom
- Anticipated saving of up to £1.2m per annum in Group product development spend from 2020 onwards and accelerating development roadmap by up to two years
- Provides solution for immediate roll out in the UK and acceleration of current mid-market strategy
- Opens international channel sales opportunities
- Brings new technological capabilities into the Group including AI, Facial Recognition, Advanced Analytics and End-user configuration tools
- Space Connect product ownership, design, support and sales to be handled from the UK through existing resources
In order to fund the cash consideration payable in respect of the Acquisition as well as additional working capital and growth capital for the enlarged Group, SmartSpace also announces a placing to raise approximately £3.44m (before expenses) (the “Placing”) through a placing of 4,747,587 new ordinary shares of 10 pence each in the Company (“Placing Shares”) at an issue price of 72.5 pence per Placing Share (the “Placing Price”). The Placing has been conducted by N+1 Singer and Canaccord Genuity.
Commenting on the Acquisition and the Placing, Frank Beechinor, CEO said:
“We are delighted to announce the acquisition of Space Connect and fundraising which was supported by new and existing shareholders. Through this acquisition, we are confident we can accelerate growth through our ability to cross-sell in our mid-market business, continuing our transformation into a pure play SaaS business.”
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