- Harvest Technology Group (HTG) has entered into a binding term sheet agreement to acquire U.S. software-as-a-service (SaaS) company SnapSupport
- HTG says the merger will deliver on the company’s strategic commitments to accelerate a SaaS-based business model and expand its access into the U.S. and other international growth markets
- The deal is subject to several conditions, including entry into a formal purchase agreement on or before May 30
- The acquisition will be funded through a two-tranche issue of more than seven million fully paid ordinary consideration shares in Harvest to the seller, worth over $2.5 million
- HTG President Andy Lowery will take leadership of the new SaaS business and oversee the integration of SnapSupport’s employees into the company
- Harvest Technology shares are up 3.03 per cent, trading at 34 cents each
Harvest Technology Group (HTG) has entered into a binding term sheet agreement to acquire U.S. software-as-a-service (SaaS) company SnapSupport.
Harvest comprises a group of Australian companies developing advanced connectivity solutions for the energy, resources and renewables sectors. The group’s “Industrial Grade Connectivity” product provides high-definition connectivity, streamed over a low bandwidth to remote areas.
Meanwhile, in Silicon Valley, SnapSupport delivers mobile solutions focussed on resolving equipment failures fast with real-time visual and augmented reality-enabled support.
According to Harvest, the merger will deliver on the company’s strategic commitments to accelerate a SaaS-based business model and expand its access into the U.S. and other international growth markets.
The deal, however, is subject to several conditions, including entry into a formal purchase agreement on or before May 30.
The acquisition will be funded through a two-tranche issue of more than seven million fully paid ordinary consideration shares in Harvest to the seller, worth over $2.5 million.
Further, 50 per cent of the completion shares will be subject to voluntary escrow for a period of 12 months from the date of issue.
HTG Managing Director Paul Guilfoyle commented on the agreement.
“The acquisition of SnapSupport, who have commercially viable solutions that are already supporting large-scale global customers with over 900 active users at any one time, will provide us with a fast and cost-effective pathway to speed-up the global rollout of our SaaS business model,” Paul said.
“The SnapSupport mobile platform is proven, fit-for-purpose and can quickly and efficiently harness the advantages of our own Industrial Grade Connectivity capability,” the managing director continued.
“Our three-phase strategic plan released in October 2020 is rapidly gathering pace and this acquisition will form part of our ability to successfully transfer from phase one to phase two.”
HTG President Andy Lowery will take leadership of the new SaaS business and oversee the integration of SnapSupport’s employees into the company.
“Connecting field workers in ways that help them become more productive, efficient and safe is something I am passionate about,” Andy said.
“We’re excited to begin this integration and bring to market new compelling capabilities focussed on connecting the mobile field across land, sea, and air.”
Harvest Technology Group shares are up 3.03 per cent, trading at 34 cents at 12:45 pm AEST.