Perth-based Harvest Technology Group is set to acquire US-owned software business SnapSupport, with $2.6 million worth of shares to be issued to the vendors.
Perth-based Harvest Technology Group is set to acquire US-owned software business SnapSupport, with $2.6 million worth of shares to be issued to the vendors.
Harvest Tech, which develops connectivity systems for the energy, resources, and renewables sectors, said the acquisition would help speed up the rollout of its software-as-a-service (SaaS) business model.
It also said the deal was in line with plans to expand into the US and other international markets.
SnapSupport, based in Silicon Valley, specialises in a SaaS-based platform for remote fieldworkers that enables hands-free inspections, real-time collaboration, and viewing of performance data from connected equipment.
Similarly, Harvest Tech has developed its Industrial Grade Connectivity (IGC) solution that enables organisations to remotely manage personnel and operating equipment.
The company is led by managing director Paul Guilfoyle and non-executive chair Jeff Sengelman.
“The acquisition of SnapSupport, who have commercially viable solutions that are already supporting large-scale customers with over 900 active users at any one time, will provide us with a fast and cost-effective pathway to speed up the global rollout of our SaaS business model,” Mr Guilfoyle said.
“The SnapSupport mobile platform is proven, fit-for-purpose, and can quickly and efficiently harness the advantages of our own Industrial Grade Connectivity capability.”
He said Harvest Tech’s three-phase strategic plan for the international rollout of its IGC platform, as announced to the market in October last year, was rapidly gathering pace.
“[T]his acquisition will form part of our ability to successfully transfer from phase one to phase two,” Mr Guilfoyle said.
The new SaaS business will be led by Harvest Tech’s US president, Andy Lowery, appointed to the group in September last year.
Harvest Tech has a 60-day period of exclusivity to complete due diligence on SnapSupport and its assets.
To fund the acquisition, Harvest Tech will issue almost $2.6 million worth of shares in two tranches, with the offer price to be equal to the five-day VWAP of the company's shares upon completion of its acquisition.
At 1:27pm AEST, the group was trading 1.5 per cent lower to 32 cents.
