Synectics takes control of Indanet ahead of schedule

WARWICKSHIRE-based security and surveillance business Synectics has acquired 100% of the issued share capital of Indanet ahead of schedule following a renegotiation of the original terms of the acquisition of the business.

The Studley firm, formerly called Quadnetics, agreed in July 2011to acquire Indanet, a German provider of integrated surveillance and security management systems to the transport industry, for a maximum consideration of €10m.

Under the original terms of the acquisition, consideration of €2m in cash was paid on completion for an initial tranche of shares equivalent to 51% of Indanet’s issued share capital, and further consideration of between €1m and €8m for the remaining 49% of Indanet would be payable in three tranches between 2013 and 2015, dependent on Indanet’s profits for the period from completion to 31 May 2015.

But the the original acquisition terms have been renegotiated so that the entire outstanding share capital in Indanet was purchased for a total consideration of €1.64m in cash. Synectics now owns 100% of the shares of Indanet which it has acquired for a total consideration of €3.64m, with no further earn out payments to be made.

John Shepherd, Synectics chief executive, said: “We are delighted to take full control of Indanet at an earlier date than originally envisaged and at an attractive price.

“Among other benefits, this move will enable us to simplify the operating structure of Indanet, and to increase our investment in accelerating the sale of Synectics’ branded systems into Germany and other markets.”