- Quantify Technology (QFY) has announced it will join forces with GSM Innovations, which owns the Zimi & Powermesh smart home tech brands
- Under the agreement, Quantify will buy 100 per cent of GSM-I from its owner Gerard Private for $4.8 million
- The consideration consists of 240 million shares being issued for 0.2 cents each and 110 million performance rights
- The acquisition is also dependent on shareholder approval, a 25-to-2 consolidation of QFY shares and a $4 million capital raise
- Today's announcement brings to an end a three-week-long suspension from trading, with Quantify shares now added back to quotation
- Shares in QFY have dropped 20 per cent since being reinstated, trading for 0.2 cents each
Quantify Technology (QFY) has announced it will join forces with GSM Innovations, the company which owns fellow smart home tech brands Zimi and Powermesh.
Quantify has signed a binding terms sheet to acquire 100 per cent of GSM-I from its owner Gerard Private.
The acquisition is set to cost $4.8 million, with the consideration to be made up of both shares and performance rights.
Specifically, Quantify said it will issue 240 million shares for 0.2 cents each and 110 million performance rights to Gerard Private.
However, the acquisition is dependent on a few different factors — including shareholder approval, which will be sought at a general meeting at the end of November.
Additionally, QFY will seek to consolidate its share capital on a 25-for-2 basis and also raise around $4 million via a capital raise, with shares offered at 0.2 cents each.
Once the acquisition and capital raise are completed at the end of the year, Gerard Private will hold a 40 per cent stake in Quantify Technologies.
Speaking on the announcement, QFY CEO Brett Savill said the merger will make the company a leader in the smart home tech market.
"Home automation is rapidly maturing meaning it is important to have multiple channels and a broad range of products," Brett said.
While Gerard Private CEO Simon Gerard said together the two companies could cross-sell their complementary products.
"Electricians and other distributors are clamouring for reliable, cost-effective, Australian smart home automation which is what we deliver. I’m really excited about the future," Simon said.
Today's acquisition announcement brings to an end a three-week-long suspension from trading, with Quantify shares now added back to quotation.
Shares in QFY have dropped 20 per cent since being reinstated, trading for 0.2 cents each at 1:17 pm AEST.