Brady, the leading provider of trading, risk management and settlement solutions to the energy, metals and soft commodities sectors, is pleased to announce that it is extending Brady Energy's product offering by adding up-to-date physical electricity trading capabilities and connectivity to most major European Transmission System Operators (TSO's). The new technology is being added through the proposed acquisition of syseca AG ("syseca") for a total consideration of CHF 1.8 million (approximately £1.2 million), including CHF 0.4 million (approximately £0.3 million) deferred consideration. Of the total consideration, CHF 0.7 million (approximately £0.5 million) will be payable in 675,951 Brady shares on completion which is anticipated on Friday 10 February 2012, following the admission of the consideration shares to AIM. The acquisition of syseca is complementary to the acquisition of Navita announced earlier today and is expected to be earnings enhancing in 2012.
syseca is a Swiss based company providing logistics software for the electricity markets. syseca has been operating since 1994 and its clients are based throughout Europe. syseca's unaudited draft accounts for the year ended 31 December 2011 show revenues of CHF 2.7 million (£1.9 million) generating profit before taxation of CHF 0.1 million.
The Directors believe that the acquisition has a compelling rationale:
- syseca brings up-to-date physical electricity trading capabilities with connectivity to most major European TSO's. This broadens Brady Energy's product offering which is anticipated to facilitate further growth;
- syseca has already proved to be a successful commercial partner for Brady, with the two companies having worked well together in the past;
- As with previous acquisitions, overlaying Brady's routes to market, salesforce and commercial infrastructure is expected to accelerate the growth of syseca; and
- The significant experience of the individuals at syseca will represent an asset to Brady.
The addition of syseca's strength in physical energy trading solutions to Brady's expertise in energy trading and risk, enhances Brady's platform for growth.
Commenting on the acquisition, Gavin Lavelle, CEO of Brady, said: "We have collaborated closely with syseca and developed a strong relationship with the team. syseca uses the latest technology and is highly complementary to our energy solutions. syseca also provides both product and domain knowledge and people skills in the expanding German-speaking markets. This acquisition further strengthens our product offering by complementing our existing financial and risk management capabilities and provides new growth opportunities."