19 Apr 2013 07:00
19 April 2013
Regenersis plc
Acquisition of the largest independent set top box repair business in South Africa
Regenersis plc (AIM: "RGS") ("Regenersis" or the "Group"), a strategic outsourcing partner to many of the world's leading consumer technology companies, is pleased to announce that it has agreed to acquire all of the issued share capital of Landela Electronics (Proprietary) Ltd ("Landela") for a consideration of 21.2m ZAR (£1.5 million) on a cash-and debt-free basis. The effective date of exchange was 18 April 2013 and completion is anticipated to occur on 25 April 2013.
Acquisition highlights:
·; Landela is the largest set top box repair business in South Africa, which operates from two facilities in Johannesburg and East London.
·; Landela's key customers are dominant in the provision of satellite TV to the South African market and 11 other countries in Africa, with a market share in excess of 90%.
·; Market penetration in South Africa of satellite TV is less than 28% of the total population, presenting very significant growth opportunities.
·; Growth in the satellite TV subscriber base in South Africa has been in double digits in each of the previous three years and is expected to accelerate.
Regenersis anticipates that, in the year to 30 June 2014, Landela will be earnings enhancing. Regenersis also anticipates that it will be able to service this growing new market with its proprietary IFT diagnostic technology, creating efficiencies and financial savings for its clients, whilst further building the business in this growth market. Landela's customers operate on a pan-African basis and this will provide a platform for growth throughout the continent.
The current senior management team, which owned the shares of Landela, will remain with the business for a short transition period.
The acquisition of Landela will enhance the progress already made organically by the Group in the South Africa market; it will bring an additional service line into South Africa; it will provide opportunities to grow into other adjacent countries and enable a further route to market for the Group's patented IFT technology.
Matthew Peacock, Executive Chairman of Regenersis, said: "As a bolt-on deal, this acquisition fits the profile of what we are trying to do very well and we are pleased to announce it so soon after a successful fundraising. Regenersis is looking for acquisitions which add at least one of the following to the Group's portfolio: a new client(s), geography or technology, as well as being accretive. Landela delivers a market leading position in set top box service provision, in this important geography, further filling out our operating matrix."
Enquiries:
Regenersis Plc +44 (0) 20 3567 7000
Matthew Peacock, Executive Chairman
Jog Dhody, Chief Financial Officer
Arden Partners plc (Nomad and Joint Broker) +44 (0) 121 423 8900
Steve Douglas
Panmure Gordon (UK) Limited (Joint Broker) +44 (0) 20 7886 2500
Dominic Morley / Charles Leigh-Pemberton
Tavistock Communications +44 (0) 20 7920 3150
Catriona Valentine / Matt Ridsdale / Keeley Clarke
About Regenersis
With its core business in repairing consumer electronics, Regenersis helps companies like HTC, Nokia, Samsung, Everything Everywhere, John Lewis, LG and others deliver the best possible after market service to its customers. Through the provision of technical call centres or managing returns and repairs, the company supports a wide range of products including mobile phones, laptops and tablets, set top boxes, televisions and other electronic equipment. Regenersis also operates in the business-to-business environment where it offers high quality and secure repair and refurbishment solutions for chip and pin devices, ATMs and even MRI scanners.
Building upon its success in repair, the company is already proving its pioneering range of services known as Advanced Solutions, which include in-field testing, where Regenersis is partnering with cable operators across the world to diagnose set-top box faults in the home, reducing unnecessary returns. The Company has also recently set up a Digital Care division, which provides extended warranty and insurance services to end customers; and Recommerce, which offers client led buy back, refurbishment and onward resale of devices.