RE: RE: Glenn leaving MSYS28 Jan 2022 09:54
MSYS MCAP is currently @£8m. When Gerry bought out MWG, SKIN valued MWG at @£16m. Can't see that DVRG would need to buy MSYS at much of a premium so maybe a takeover for £10m could be on the cards. If you look back at all the synergies Gerry used to justify the acquisition of MWG at the time, the same could easily be applied here and may indeed be a requirement of China Resources to derisk DVRG's ability to deliver a complete solution from under a single entity?
Rationale for Acquision of Modern Water:
DeepVerge and Modern Water have been working together since signing the Production and Logistics Agreement on 17 March 2020, under which DeepVerge is contracted to produce test kits for Modern Water.
DeepVerge has seen significant growth opportunities for its real time water contamination detection and environmental sector solutions as a result of COVID-19. This in turn has resulted in contracts for reagents with Modern Water. These reagents are used by hundreds of water authorities and environmental management authorities to monitor systems with thousands of Microtox units installed around the world.
The DeepVerge Board identified a number of synergies of combining the two businesses:
· Facilities and on the ground sales capability on three continents, Europe, US and China
· Comprehensive monitoring systems from trace metals to viruses
· AI database that can learn from thousands of data points monitoring a myriad of contaminants to provide early warning, analysis and prediction capabilities
· Ability to expand routes to markets with an online affiliate system and partnering with major water players across SCADA/asset/work management
· A bigger group will have greater credibility in the marketplace
. Corporate cost savings with a single listed entity