Fintech company GSTechnologies Limited (LON:GST) has entered into an agreement to acquire 66.67% of the issued share capital of Semnet Pte Ltd, a Singapore-based cyber security company, for an aggregate consideration of US$1.8 million, payable via US$0.8 million in cash and US$1.0 million in new company shares.
Semnet is a profitable cyber security business that will provide GSTechnologies with expertise and licenses that the Directors believe are critical to the advancement of the company’s GS Money and B2B Neobanking operations.
Cybersecurity is of particular importance to the Company’s growing global Neobank ecosystem, which was recently strengthened by the acquisition of PAYPT finance Ltd, now renamed Angra Global.
The remaining 33.33% of Semnet shares are owned by Ong Siew Phek (23.33%) and Lam Pek San (10%). Ong Siew Pek is the wife of the Company’s Executive Director and CEO, Jack Bai.
In its most recently published unaudited accounts to 30 September 2022, Semnet had a turnover of US$4.22 million and reported pre-tax profits of around US$0.21 million.
Tone Goh, Chairman of GST, Chairman of GST, commented:
“This strategic acquisition represents a further important step in the Company’s journey. Our commitment to innovation and excellence remains unwavering and having in-house cybersecurity knowledge and capabilities is important as we continue to build a B2B Neobank that provides 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.”