Smart Marine acquires remote comms company

Smart Marine Systems has acquired fellow Western Australia-based ocean technology business Advanced Offshore Streaming in a deal potentially worth over $5.5 million.

Fremantle-based Smart Marine, which provides a real-time marine monitoring platform as its flagship product, told the ASX it will pay $3.5 million up-front in cash to buy Advanced Offshore.

This entire cash sum will be raised via a secured convertible note offering.

It will then outlay two cash instalments of $750,000, which will occur 12 months and 24 months after the acquisition is completed.

Additionally, Smart Marine will issue shares 12 months and 36 months after the buyout is finalised; based on Smart Marine’s previous closing price of 2.6 cents, this equates to a total of $580,000.

Smart Marine also intends to raise $520,000 via 2.2 cents per share rights issue after the acquisition is completed.

Advanced Offshore, which is located in Carine, reported pre-tax underlying earnings of $900,000 from revenue of $2.5 million for the 2019 fiscal year.

The company provides remote communications technology in the resources sector.

Smart Marine said this technology could be incorporated into its existing product offerings.

It also said the technology could allow it to expand its market reach beyond just the offshore sector, with potential application in several areas including in the emergency, defence and airline industries.

Smart Marine was formerly known as Shark Mitigation Systems.

Shares in Smart Marine were up 3.9 per cent to trade at 2.7 cents each at 1.30pm AEST.