Spectur’s acquisition of 3CT is set to thrust the company into markets and technologies it would otherwise be seeking to organically develop in the future. 

Spectur (ASX:SP3) is about mash the accelerator on its vision and strategy for the future, after completing the 100% acquisition of 3 Crowns Technologies (3CT) it announced in December.

Under the terms of the deal, Spectur will pay $600k in cash and $250k in scrip for 3CT – a provider of environmental monitoring, artificial intelligence, analysis and reporting solutions for cameras and sensor data.

The acquisition is expected to result in revenue uplift for Spectur, as well as improved pathway to potential profitability and other substantial synergies.

3CT currently has 23 active customers which generate $1.3m in FY22 revenue, 80% of which are recurring software fees. For the FY22 financial year, 3CT booked bottom line EBITDA of $59k.

Following Friday’s completion, the work of integrating the two companies is now commencing.

“The acquisition of 3CT marks a material milestone in the growth of Spectur,” said its CEO, Gerard Dyson.

“The platform of technology, people, customers and experience that we can now bring to sensing, thinking and acting in remote locations has taken a substantial leap forward. We are all looking forward to making our communities even safer and better.”

Who is 3CT?

3CT is a tech company which provides environmental data (camera and other sensors), analytics and reporting to the government and corporate sectors.

The company’s technologies are currently being used in emergency services, smart cities, disaster management, public space management and environmental monitoring.

Its core capabilities include the Envirocoms platform, a solution that collects and manages data from a wide range of environmental sensors and CCTV systems by using data processing and machine learning.

It is said to be the only platform capable of integrating CCTV video with data from IoT devices and other API data sources.

3CT’s Secure Go is a cloud-based software solution for video surveillance networks, and is regarded as Australia’s premiere enterprise-grade VSAAS (Video-Surveillance-As- A-Service).

It provides a simple plug and play set-up with flexibility to add and remove cameras from a single one to a thousand at any time, making it perfect for mobile or remote cameras.

The CoastalComs platform meanwhile is the leading provider of technology solutions for the waterways and coastal management industry of Australia.  This technology can efficiently collect and generate insights into complex problems surrounding those environments including shoreline analysis, surf and wave analytics and water level monitoring.

Other platforms in 3CT’s suite of products include Live Stream, a platform to stream any IP camera video across the internet; and  Smart Live App, a solution that provides live streaming phone applications for webcams, local weather and news that can be made available to the public.

Rationale for the acquisition

Spectur believes that 3CT brings a range of technology that it would otherwise be seeking to organically develop in the future.

According to Spectur, 3CT’s proven cloud-based platforms will provide a big step change in the range of “sensing” that Spectur can provide through its current Sense, Think, Act offering, including 3CT’s use of AI.

3CT’s products can also accelerate Spectur’s push into the broader safety and warning solutions outside of beach zones, including fire and flood.  Spectur already dominates the beach safety and warning space in Australia.

In addition to beach-focussed customers, the broader range of 3CT customers neatly overlaps with Spectur’s focus around government and utility customers, including a history of operations and an ongoing customer in the USA.

The acquisition also presents multiple opportunities to reduce costs by combining technologies, as well as bringing in an experienced General Manager from 3CT along with expertise in data science, software development and operations.

“3CT ticks a large number of boxes, and we believe will add substantially and synergistically to the operations and strategic future of Spectur, creating shareholder value well in excess of the purchase price,” said Dyson.

This article was developed in collaboration with Spectur, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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