The integration of Spectur’s (ASX: SP3) acquisition of 3 Crown Technologies (3CT) is going swimmingly, with phase one of the unification complete – meaning primary HR, financial and banking work streams are supported with Spectur systems.

3CT’s mission was to improve the understanding of the environment using technology and automation. They solve complex environmental monitoring challenges, with expertise in waterways and coastal areas. Acquiring 3CT enhances Spectur’s ability to integrate, analyse and report complex data sets and video in real time simply and easily – such as through shoreline monitoring and integrated real time dashboards. This represents a “no-brainer” match-up for Spectur given the overlap and complementary offering and tech ability.

With the acquisition of 3CT, Spectur has saved an estimated two years in painstaking R&D. At a net acquisition cost of potentially as low as $550k ($300k cash and $250k scrip), this results in a 9.3x EV/EBITDA multiple, and a mere 0.42x EV/Revenue multiple – which the company believes represents incredible value.  The ultimate net cash position will be contingent on the sale (or otherwise) of approximately $140k of static IP addresses, along with approximately $160k of cash and cash equivalents acquired in the transaction and any final adjustment payments.   

All synergies are expected to add straight to Spectur’s bottom line. The company has completed extensive briefings with the sales team, and expects to be increasingly active in the market in the very near term. 3CT has been operating as a profitable business for a number of years, and Spectur aims to continue this while placing a larger focus on growth.

Spectur MD Gerard Dyson is very pleased with how smoothly the integration of 3CT is proceeding and the promise that exists in cost and revenue synergies along with acceleration of the technology roadmap and strategic plan.  

“In the near term we will be focussing on the low hanging fruit of introducing the 3CT AI, analytics and visual dashboards to existing Spectur customers that have similar attributes to 3CT customers.  Further up the tree, we are working to build the sales and marketing pipeline for 3CT standalone customers, along with the broader network of the existing 600+ active customers that Spectur has.  When we address the ‘orchard’ of medium term opportunity, the combined Spectur and 3CT platform is expected to develop a range of new customers in our existing market sectors and beyond.  We will become fruiterers…”

Purchase orders received for significant Optus contract

Spectur has received purchase orders for their updated statement of work with Optus – which now stands at $2.023 million and is almost double the size of their previous contract with Optus. This extends the multi-year rollout of Spectur hardware, services and software subscriptions to protect and service remote assets of Optus and Australia Tower Network (ATN).

The Company is expecting to more than double the number of systems owned and operated by Optus, with the final total approaching 10% of the installed Spectur base.

All systems go

Spectur is continuing to roll out a suite of new security solutions which can add value to customers. Among these, their new modular power solution, STA-Power, is soft launching now. Effectively like having a power outlet in the sky, the STA-Power combines solar, battery, a power controller and telemetry (wireless data transmission) – and will be used to power Spectur’s camera platforms and also satellite connections. This represents the Company’s increasingly modular approach to solutions that fit with their internal as well as external products.

Image: Spectur. STA-Power

In addition, Spectur continues to accelerate the roll out of their new STA6s platform as they move to a more modular architecture for software and hardware. Their new trailer mount solution for STA6s has had successful field trials and the first of them have been shipped. The system monitors critical sites, deters and warns of danger and builds custom sensing solutions – and the new trailer mount is perfect for truly mobile solutions. 

Image: Spectur. STA-Power                              Image: Spectur. STA6s trailer mount

Labour shortage supportive of Spectur solution

Spectur strategy recognises the broader accelerating trend of labour shortages and improved capabilities of technology, which is facilitating the implementation of AI and automation into the security industry. Incorporating Spectur’s surveillance solution that is able to spot a problem, make a decision and take an action is now a crucial part of a comprehensive security system. In the face of a severe shortage of security guards, for example, the technology allows security companies to stretch their physical guard services further – at an economic price.

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