Posted by Jimmy Song > 2014-04-28 19:43 | Report Abuse

NEXGRAM PLANS TO ACQUIRE SENSORLINK GROUP Signs an MoU to acquire 70% stake KUALA LUMPUR, 28 APRIL 2014 – Nexgram Holdings Berhad (“NEXGRAM”), a diversified investment holding company listed on the ACE Market of Bursa Securities Malaysia, today announced that it has executed a Memorandum of Understanding (“MoU”) with the vendors of Sensorlink Holdings Sdn Bhd (“SENSORLINK”), one of the leading security surveillance service companies in Malaysia, to acquire 70% equity stake in the latter subject to the terms and conditions stipulated in the definitive sale & purchase agreement (“SPA”) for a total consideration of RM28.6 million. “We believe that the proposed acquisition of SENSORLINK will contribute positively to our Group, not only through earnings but also through synergistic and intangible benefits. We will be investing in significant upgrades to our system platforms and infrastructures in order to remain relevant in our industry and maintain a competitive edge. We also have an upcoming property development project in Cyberjaya, which will consist of a niche mixed property development accompanied with an in-house data centre. SENSORLINK, specialising in security and video surveillance equipment, willnot just be an important addition to us in order to safeguard our assets, it will also leverage on our infrastructure and business network, especially in bringing new customer base to our big-data services. This deal will be beneficial for both NEXGRAM and SENSORLINK since we can both leverage on our existing customer base.” commented a spokesperson from NEXGRAM. According to sources familiar with the security and surveillance industry, the proposed acquisition will be an excellent opportunity for NEXGRAM to tap into a RM120 billion (US$40 billion) global video surveillance market. SENSORLINK currently has an approximate US$10 million market share, which is a tiny fraction of the global market, despite being one of the top players in the Malaysian market. This means that there is a huge potential for substantial growth. “There is definitely a huge upside potential which we can capitalise on.” continued NEXGRAM. NEXGRAM global business provides SENSORLINK instant access to regional expansion, especially in emerging markets such as Indonesia, Thailand and Vietnam. Many of these markets are right at the beginning stage of surveillance technology transition from analogue to IP based system. The global security market, which includes surveillance, electronic access control systems, intruder alarm and others, was a mere US$16 billion market in 2008. Asia Pacific holds approximately 16%, or US$2.6 billion market share. Malaysia’s video surveillance market was estimated at over US$65 million in 2008, the company believes today the market has exceeded beyond most analyst expectations. About Nexgram Holdings Berhad Nexgram is a diversified investment holding company with interest spanning across different industries. The company provides infrastructure, resources, investment and industrial products & services across telecommunication, information technology, property, mineral resources and various private & public sectors. Nextnation Network, a subsidiary of Nexgram, is a leading end-to-end mobile application service provider connecting to international mobile networks, supporting thousands of developers and distributors worldwide. Godynamic Investments is the venture arm of Nexgram, which has a mandate to specifically invest in start-ups and businesses in their incubation stage, ranging from mobile software, Internet, social media and information technology sectors. Nexgram Venture Partners focuses in growth investment, particularly high growth companies, including public listed companies (PLC), Government linked companies (GLC) or venture-backed pre-IPO portfolios. For more information, please visit www.nexgram.com About Sensorlink Holdings Sdn Bhd Sensorlink principal activities are investment holding, design, develop, import and distribution of security and video surveillance equipment, systems and technologies. The company provides maintenance and surveillance outsourcing contracts as part of recurring services to clients especially in banking, property development and various private and public sectors. Sensorlink owns 100% equity interest in Sensorlink Sdn Bhd (“SLSB”), 49% equity interest in Sensormax Sdn Bhd (“SMSB”) and 51% equity interest in Centrix Security Sdn Bhd (“CSSB”). For more information, please visit www.sensorlink.com.my