Galasys Acquires I Logic Solutions Sdn Bhd
Galasys PLC, a leading provider of ticketing systems and solutions to the fast growing theme park industry in Asia, is pleased to announce that it has acquired I Logic Solutions Sdn Bhd ("iLogic") whose main business activity is consultancy, system study & design, implementation and training of leisure and entertainment software solutions in Malaysia.
I Logic Solutions Sdn Bhd
iLogic is managed by a group of Information and Communication Technology ("ICT") solution experts who have extensive experience of implementing ICT solutions across South East Asia. iLogic's solutions include leisure and entertainment solutions, Point-of-Sales ("POS") solutions, Passenger Management System and other implementation and maintenance services and are all branded under i-CONCEPT.
iLogic's solutions are used by well-known and prominent sites including Sepang International Circuit which has hosted several Formula 1 race events in Malaysia and the National Zoo of Malaysia. iLogic has also developed an online travel agency platform that brings together theme parks and online travel agencies ("OTA") in Malaysia together with a business-to-business model whereby theme parks will sell their tickets through the platform to the OTAs.
Consideration and conditions of Acquisition
Pursuant to the agreement entered into between the Group's fully owned subsidiary Galasys Holdings Limited ("GHL") and the shareholders of iLogic, GHL will acquire the entire issued share capital of iLogic for a total consideration that is based on the aggregate of a multiple of 2 of its audited profit after tax for each of the financial years 2014, 2015 and 2016 with a maximum amount payable of MYR7,000,000 (c. GBP1,296,296) (the "Consideration"). For financial year 2014, the earn-out payment shall be fully in cash and of which an upfront cash payment of MYR400,000 (c. GBP74,074)) has been paid upon closing of the Acquisition. Subject to certain terms and conditions, the earn out payment for financial years 2015 and 2016 shall be paid 50% in cash and 50% in the form of new shares of Galasys. The shareholders of iLogic have also given a profit guarantee of MYR200,000 (c. GBP37,037) for financial year 2014.
Strategic Rationale for the Acquisition
Galasys believes that by utilizing its experience and position as a prominent provider of ticketing system solutions in Malaysia it will be able to exploit value from iLogic by:
- increasing market share in the Malaysian theme park sector
- integration of iLogic's Online Travel Agent portal in Malaysia with Galasys's own recently launched CLOTA in China to accelerate the expansion of Galasys's online business across South East Asia
- leveraging on further technology synergies between Galasys and iLogic.
Commenting on the announcement, Mr. Seah, Chief Executive of Galasys, said:
"This represents the first acquisition by Galasys since the IPO in May last year and we are excited as this will strengthen and consolidate our market position in Malaysia. The acquisition is also timely as it gives Galasys an opportunity to fasttrack CLOTA's launch in South East Asia. We are delighted to have closed this acquisition and look forward to the successful integration of iLogic into the Group and creating greater synergistic opportunities."