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- Threat Protect Australia (TPS) has agreed to buy its reseller’s client base, SMS Security Monitoring, for $752,000
- The company says the purchase aligns with its strategy of converting reseller serviced lines to direct clients
- Additionally, the company has advised it is on track to meet its revenue and earnings guidance
- It comes as TPS continues cost-cutting and revenue generation programs
- In February, TPS established a cost committee — since then, the company has saved around $351,000 per month
- On the market this morning, TPS is in the grey and trading at 4 cents per share
Threat Protect Australia (TPS) has agreed to buy West Australian security company SMS Security Monitoring client base for $752,000.
SMS is a reseller of the company’s South Australian client and has 1482 monitored alarm customers.
TPS says the purchase aligns with its strategy to convert reseller serviced lines to direct clients.
Under the purchase agreement, $276,000 is payable in 12 months based on the retention of purchased revenue levels.
“This conversion strategy continues to add value to the company’s business, and the company continues to identify other similar opportunities to further increase recurring revenue and cashflow,” TPS told the market on Tuesday.
In addition to the acquisition news, the company has advised it is on track to meet its revenue and earnings guidance, with cost-cutting and revenue generation programs still underway.
In February, TPS established a cost committee — since then, the company has saved around $351,000 per month.
At the end of the September quarter, TPS had just over $3.4 million in the bank.
On the market this morning, TPS is in the grey and trading at 4 cents per share at 10:08 am AEDT.
