The deal increases its market share in the Malaysian theme park sector. Theme park ticketing specialist Galasys (LON:GLS) has strengthened its position in Malaysia with the acquisition of leisure sector software group iLogic Solutions. iLogic’s customers include Formula One circuit Sepang International and Malaysia’s national zoo.
The software firm has also developed an online travel agency platform that brings together Malaysian theme parks with online travel agencies. The deal will increase Galasys’ market share in the Malaysian theme park sector, while integrating iLogic’s online travel agent with its own recently launched online travel agency (OTA) service in China (CLOTA) would speed up its expansion across Asia,Galasys said. Sean Seah, Galasys’ chief executive, added: “This represents the first acquisition by Galasys since the IPO in May last year and we are excited as this will strengthen and consolidate our market position in Malaysia.
“The acquisition is also timely as it gives Galasys an opportunity to fast track CLOTA’s launch in South East Asia.” Galasys has agreed to pay a maximum of £1.3mln dependent on profits for the year just ended and the next two years. iLogic has guaranteed profits in 2014 were at least £37,000. Broker Northland added the 2014 payment is £74,000 in cash and had been paid upfront, while the payments for 2015 and 2016 will be a cash and shares split. “Consideration of two times profits looks pretty compelling and the acquisition should be immediately earnings’ enhancing,” added the broker. By Philip Whiterow
(Source:http://www.proactiveinvestors.co.uk/companies/news/75882/galasys-broadens-malaysian-footprint-with-first-acquisition-since-ipo-75882.html, 5/1/15)
