SYDNEY: SmartSpace Software has agreed to acquire the entire issued share capital of Space Connect Pty Limited for a total consideration of AUD 6.0 million (approximately £3.2 million), to be satisfied by the issue of up to 2,026,234 ordinary shares of 10 pence each in the capital of the Company.
SmartSpace Software is the leading provider of ‘Integrated Space Management Software’ for smart buildings, commercial spaces and hospitality.
In order to fund the cash consideration payable in respect of the acquisition as well as additional working capital and growth capital for the enlarged Group, SmartSpace also announced a placing to raise approximately £3.44 million through a placing of 4,747,587 new ordinary shares of 10 pence each in the Company at an issue price of 72.5 pence per Placing Share.
The Placing has been conducted by N+1 Singer and Canaccord Genuity.
Commenting on the Acquisition and the Placing, Frank Beechinor, CEO said: “We are delighted to announce the acquisition of Space Connect and fundraising which was supported by new and existing shareholders. Through this acquisition, we are confident we can accelerate growth through our ability to cross-sell in our mid-market business, continuing our transformation into a pure play SaaS business.”
Space Connect is an Australian based company operating in the workspace management environment. The company offers a cloud-based platform offering room booking, desk booking, visitor management, catering and workplace analytics. The business has technology in the areas of facial recognition, AI and analytics, along with allowing for the rapid deployment and configuration of tools to be used by customers and partners.
As the Group focusses on reducing its dependency on ‘lumpy’ enterprise deals and focuses on diversification into new markets, it is anticipated that the Acquisition will accelerate SmartSpace’s shift towards this revenue profile as Space Connect integrates with and enlarges within the enlarged Group.