Cash shell Conduity Capital PLC has found a company it wants to take over: Smarttech247, an artificial intelligence (AI) specialist working in the cybersecurity field.
Conduity has conditionally agreed to acquire Smarttech247 for £33.5mln, to be satisfied through the issue of Conduity shares. With a market capitalisation of just £1.6mln, this would count as a reverse takeover (RTO) under AIM’s rules.
Trading in the shares of Conduity is currently suspended. As a cash shell, Conduity has until 6 October to complete an acquisition, otherwise its AIM-listing will be suspended. The company still has to do its due diligence on the proposed acquisition and indicated it may not be able to meet this deadline, which would probably result in the company seeking to reapply for a listing on AIM should an acquisition be completed after the deadline.
For the period ended 31 July 2020, Smarttech247 reported audited profits before taxation of €829,000, revenue of €4.8 million and had net assets of €712,084.
These figures represent a significant increase compared to the previous year and the management of Smarttech247 believe that the current year to 31 July 2021 will demonstrate further substantial progress as they build on the stable of internally developed automated security products currently consisting of the successful ThreatTub (threat and vulnerability modelling and management) and NoPhish (an AI driven phishing response solution to threat emails).
Check out our video to hear about how @smarttech247 implemented a 24/7 MDR capability within ASL Aviation Holdings to help them reduce their cybersecurity risk, enhance visibility and protect against imminent threats. Hear what the customer has to say: https://t.co/c0ARbXguMu
— Smarttech247 (@smarttech247) August 3, 2021
"Cybersecurity is a fast-growing market, with threats to organisations increasing on a daily basis. We are therefore very excited to be working with Smarttech247 towards a RTO which we believe would be transformational for Conduity,” said Greg Collier, the chairman of Conduity.
“Smarttech247 is already an established company in the sector with a successful track record of growing revenue and profitability. Going forward, we firmly believe that both the company and the sector are poised for further significant growth,” he added.
Ronan Murphy, the chief executive of Smarttech247, said the company was very pleased to have been introduced to Conduity by its advisors.
“We believe that the Smarttech247 business is well placed to become a global leader in the automated managed detection and response space. We have a proven track record, strong revenues and growth plans and a fantastic book of clients and we believe that working now with Conduity will help us to achieve our business goals," he said.