Proactive Investors - Fintech company GSTechnologies Ltd (LON:GST) has acquired two-thirds of Singapore-based cybersecurity company Semnet’s issued share capital in a US$1.8 million (£1.4 million) deal.
GSTechnologies will pay US$800,000 in cash and US$1 million in new shares for the 66.67% stake, subject to the agreement of a completion statement.
Semnet is a profitable business that will provide GSTechnologies with expertise and licences that the directors believe are “a critical component to the advancement of the company's GS Money and B2B Neobanking operations”.
In its most recent unaudited accounts published in September 2022, Semnet had a turnover of US$4.2 million and a profit before tax of approximately US$210,000.
Cybersecurity is of particular importance to GSTechnologies’ developing global Neobank ecosystem which has recently been enhanced by the acquisition of Angra Capital (formerly PAYPT Finance).
"This strategic acquisition represents a further important step in the company's journey,” said Tone Goh, chairman of GSTechnologies. “Our commitment to innovation and excellence remains unwavering, and having in-house cybersecurity expertise and capability is important as we continue to build a B2B Neobank providing next-generation digital money solutions.
“We look forward to providing updates in due course on the progress of this acquisition and the subsequent enhancements it brings to our fintech offerings."