- ST Engineering (SGX:S63) plans to acquire a 100% stake in D'Crypt for an initial consideration of S$67m, subject to conditions precedent and customary post-completion adjustments.
- We view the acquisition positively as it further strengthens ST Engineering's cyber business, which is a trusted provider of end-to-end IT and operating technology cybersecurity solutions for critical infrastructure and high-security enterprises.
- - Read this at SGinvestors.io -
Details of the D'Crypt deal.
- In addition to the initial consideration, the deal also includes an earn-out consideration of S$5m conditional upon meeting the stipulated earn-out milestone. Based on the unaudited financial statements of D’Crypt for the half year ended 30 Jun 2023, the book value and NTA of D’Crypt stood at ~S$48.1m and S$46.1m.
- - Read this at SGinvestors.io -
- ST Engineering expects to incur transaction expenses of ~S$0.6m (~1% of enterprise value), which will be fully incurred in 2023. There will also be integration expenses of ~S$2.7m, which will be incurred over three years.
- ST Engineering expects to complete the transaction in the first quarter of 2024.
Enhances capabilities.
- Read more at SGinvestors.io.
Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2023-12-15
Read also RHB's most recent report:
2024-06-24 ST Engineering - Order Wins Continue; Keep BUY.
Previous report by RHB:
2024-05-14 ST Engineering - In-line 1Q24; Maintain 2024 Growth Expectations.
Price targets by 2 other brokers at ST Engineering Target Prices.
Listing of research reports at ST Engineering Analyst Reports.
Relevant links:
ST Engineering Share Price History,
ST Engineering Announcements,
ST Engineering Dividends & Corporate Actions,
ST Engineering News Articles
