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- SenSen Networks (SNS) has entered a share purchase deal to acquire Scancam Industries for $6.5 million which comprises a combination of cash and shares
- Scancam developed an anti-fuel theft solution, which prevents motorists from driving off at service stations — ultimately protecting fuel retailers’ profits
- SenSen believes integrating Scancam’s technology with its SenTRACK technology will deliver a world-first AI data fusion solution to prevent theft in all retail environments
- Scancam’s, co-founder, Eoin Byrne, says Scancam is keen to supercharge its solutions and move into new markets and geographies
- Company shares are trading flat at 15 cents
SenSen Networks (SNS) has entered a share purchase agreement to acquire Scancam Industries for $6.5 million.
Who is Scancam?
Scancam provides artificial intelligence (AI) solutions for Australian fuel retailers including BP, Ampol (Caltex), Chevron, WA Police, and more.
Its anti-fuel theft solution is designed to prevent motorists from driving off at service stations which ultimately protects fuel retailers’ profits. After capturing licence plates and images of the offenders, the technology triggers operational processes to prevent further losses.
Rationale
SenSen CEO Dr Subhash Challa says the company is pleased to welcome Scancam to its group to expand revenue-earning offerings and combine their technologies.
“This is an important strategic acquisition for SenSen, a move that not only aligns to our annual recurring revenue-generating growth plans for FY22 and beyond, but also provides a strong foundation and impetus to move into the broader retail business vertical,” Dr Challa said.
While Scancam developed the anti-fuel theft solution to address the fuel retail industry’s $59 million per annum loss, its over-arching vision is to launch product enhancements to solve broader retail theft issues.
“After many years of growing our anti-fuel theft business, we are excited to find a partner in SenSen to supercharge Scancam’s technology solutions and move into new markets and geographies,” Scancam Co-founder Eoin Byrne said.
The acquisition offers growth opportunities, particularly for Scancam, which will see its portfolio of service stations grow from about 250 to 6500.
SenSen believes that combining Scancam’s technology to track vehicles with its SenTRACK technology that tracks people of interest will deliver the world’s first AI data fusion solution to prevent theft in all retail environments.
Transaction
SenSen will pay $6.5 million which includes an up-front cash payment of $1 million and $5.5 million worth of ordinary shares.
The number of shares to be issued will be determined by dividing $5.5 million by the volume-weighted average price (VWAP) of SenSen’s shares during the seven business days ending on the last day prior to the completion date. This is subject to a minimum VWAP of 14 cents and a maximum price for the VWAP of 21.5 cents.
As such, the maximum number of shares that can be issued is 39,285,715, which marks about 7 per cent of SenSen’s issued share capital on a post-issue basis.
About 49 per cent of the shares will be escrowed for six months from the completion date. The remaining 51 per cent will be escrowed for 12 months from completion.
Company shares are trading flat at 15 cents at 3:02 pm AEST.
