SCAN Associates Bhd today entered into agreements to acquire two companies, Microsense Sdn Bhd (MCSB)and Skykod Polyscience Sdn Bhd (SPSB), for about RM98 million.

In a filing to Bursa Malaysia, KAF Investment Bank Bhd, on behalf of the company, said SCAN had signed a conditional share sale agreement with shareholders of MCSB for the proposed acquisition of the entire equity interest of the latter, comprising 23,835,399 ordinary shares, for RM42.30 million. The purchase will be satisfied by the issuance of 423,018,830 new ordinary shares of 10 sen each in SCAN.

SCAN has also inked a similar agreement with SPSB to acquire the entire equity interest of the latter comprising six million ordinary shares for RM55.69 million. The purchase will be satisfied by the issuance of 556,981,170 new SCAN shares at par.

SCAN said the acquisitions would provide the company with a new profitable business and increase its existing range of ICT solutions and services including expanding its business into the medical industry.

The proposed acquisitions will result in MCSB and SPSB becoming wholly-owned subsidiaries of SCAN, allowing the company to tap into the financial resources and competitive strengths of the two firms, and enhance the group's financial and operational capabilities.

SCAN also said that the proposed acquisition of MCSB was an extension and expansion of the secured ICT business of the company.

"With the proposed MCSB acquisition, the SCAN group will have the opportunity to jointly share knowledge and expertise. The enlarged group will have a larger base of human capital resources that are highly skilled in the secured ICT solution," SCAN said.

Meanwhile, the proposed acquisition of SPSB will enable the SCAN group to diversify into the medical industry. The SPSB group generates more than 90 per cent of its revenue from European markets. -- BERNAMA