Enzumo enters agreement to buy Chant West
Listed fintech provider, Enzumo, will seek shareholder support for its planned acquisition of Chant West.
The company announced to the Australian Securities Exchange (ASX), that it had entered into a conditional share purchase deed to buy the research, software and consultancy business for $9.5 million, including $6.98 million in cash and $2.52 million in shares at $0.28 per share.
"The funds to meet the acquisition consideration and associated costs have been raised from a two tranche placement of approximately 33.4 million shares at $0.28 per share totalling $9.5 million," the company said.
Under the agreement, Chant West principal, Warren Chant, will take a seat on the Enzumo board of directors, while the management team of the business will remain the same within Enzumo.
"It's one of those situations where the whole really will be greater than the sum of the parts," Chant said.
"By teaming with Enzumo, we will have access to expertise in financial technology that is second to none in Australia. That will enable us not only to broaden and enrich the services we provide to our existing clients, but also to integrate other services into our offering that have already been developed by Enzumo and can be tailored to our clients' needs.
"Alongside Enzumo, we can also build new technology-based products and services to cater for the changing needs of our clients — and theirs, because to a large extent we are operating in the same space. Both of us bring a lot to the table, and the great thing is we do so as collaborators, not as former competitors."
Enzumo shareholders will be asked to support "the relevant approvals" to complete the acquisition of Chant West at the company's annual general meeting on 11 December 2015.
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