Home Economy Business Radiant Globaltech shareholders approve acquisition of Grand-Flo Spritvest

Radiant Globaltech shareholders approve acquisition of Grand-Flo Spritvest

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PETALING JAYA: Radiant Globaltech Bhd shareholders have approved the acquisition of an 80% stake in Grand-Flo Bhd’s wholly-owned subsidiary Grand-Flo Spritvest Sdn Bhd (GF Spritvest) for RM11.6 million cash at its EGM today.

Shareholders also approved the variation of the use of proceeds raised from its initial public offering (IPO) to partially finance the purchase of consideration of RM11.6 million, where RM11.5 million would be satisfied through IPO proceeds and the remaining RM100,000 via internally generated cash or bank borrowings.

The acquisition of GF Spritvest would allow the retail technology solutions provider to expand its customer coverage to include non-retail customers such as fast-moving consumer goods (FMCG), electronics, and utilities industries in Malaysia.

Radiant Globaltech managing director Paul Yap Ban Foo said the acquisition of GF Spritvest allows it to expand its customer base beyond the retail segment into the FMCG, electronics and utilities industries. With majority of its clients from the essential services sectors, this provides business sustainability through various economic cycles.

“Furthermore, we intend to integrate GF Spritvest’s software offerings to our AX B2B platforms, and combine technical support service teams. This allows us to create a synergistic effect through enhanced solutions and capture a larger market share in the non-retail segments, including the FMCG, electronics and utilities segments.

“Once the regional borders are open, we will have the opportunity to bring GF Spritvest’s software offerings to countries where we have established a direct presence, namely Cambodia, Vietnam and Thailand. This would bring us one step closer to reaching our goal of becoming a leading total integrated technology player,” Yap said in a statement today.

The acquisition is also supported by a service agreement with GF Spritvest director and CEO Cheng Ping Liong, who will continue to lead GF Spritvest. Further, Cheng would provide a cumulative net profit guarantee of RM3.2 million from the completion date of the share sale agreement (SSA) until the financial year ending Dec 31, 2022.

The acquisition is expected to be completed in the fourth quarter of 2020, pending the fulfilment of terms of the SSA. Upon completion, Radiant group would own 80% of GF Spritvest, while the balance 20% will be held by Jejaka 7 Capital Sdn Bhd.

GF Spritvest provides electronic data capture and collation (EDCC) solutions that enable businesses to manage and collate data with barcode and radio-frequency identification technology.

GF Spritvest’s EDCC solutions include assets tracking, sales force automation, warehouse and inventory control software and barcode devices. GF Spritvest’s comprehensive solutions include the supply, installation, and integration of EDCC hardware and devices, distribution and integration of both proprietary and third-party software, as well as technical support and maintenance services.

“This acquisition is in line with the group’s long-term goal to diversify our customer base beyond the retail sector. In end-2018, we acquired Infoconnect Commerce Sdn Bhd, which expanded our customer base to include non-retail players such as manufacturing and industrial clients. This latest acquisition of GF Spritvest accelerates this objective by further improving our product offerings to non-retail clients, and opening up new markets for the enlarged group,” Yap said.

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