Surveillance and security company Spectur Limited (ASX: SP3) has entered a binding agreement to acquire 100% of 3 Crowns Technologies (3CT) – a transaction the former believes will provide strategic benefits, additional revenue and positive EBITDA.

(This comes at a time when Forbes predicts that 2023 is going to be a ‘breakout year’ for AI education and literacy.)

Per the agreement, the consideration payable by Spectur to 3CT’s proprietary company Coastalwatch Holdings comprises $600,000 cash and $250,000 in fully paid ordinary shares in the capital of Spectur.

Operating within the AI and sensing space, 3CT provides monitoring, analysis and reporting solutions for cameras and data – two components that make up the meat and potatoes of Spectur’s offering.

The company had 23 active customers (23 December 2022) with more than 80% of its $1.3 million in FY22 annual revenue as recurring software fees. Its EBITDA for the same period was approximately $59,000 and the business is debt free. 

“3CT adds to Spectur’s advantage of being the first and currently only ‘set and forget’ turnkey, solar-powered, camera-based security and surveillance solution that can run on low data,” Spectur Managing Director Gerard Dyson said.

Values and goals aligned through AI

Similar to Spectur, 3CT uses AI to help improve people’s living environments by solving problems in emergency services, smart cities, disaster management, public space management and environmental monitoring.

The company has been contracted by both government and private institutions such as NSW Government, Queensland Government, City of Gold Coast, Seqwater, Surf Life Saving Queensland, Lendlease and Gladstone Ports Corporation.

One of 3CT’s offerings is Envirocoms, a platform that collects, centralises and manages data from environmental sensors and CCTV systems and is the only platform capable of integrating CCTV video with data from Internet of Things devices and other API data sources.

“The range of technology that 3CT brings will accelerate and expand the vision and strategy for Spectur more efficiently and effectively, with lower risk than organic growth in these areas,” Mr Dyson said.

“This transaction accelerates our R&D plans by 24 months or more in sensing and UI/UX expansion and truly creates an even greater technology moat around Spectur.”

Spectur also believes it can extend its own dominance in Australia’s beach safety and warning space and beyond (fire and flood safety) by adding 3CT’s range of monitoring services.

Both companies share market synergies around government and utility customers and Spectur expects 3CT’s existing operations in the USA to help de-risk and facilitate a future entry point into US markets.

The acquisition also comprises other key elements and assets of 3CT including cash and cash equivalents of ~$170,000, intellectual property in a number of monetised coastal monitoring algorithms and more than 60 owned and licensed coastal camera monitoring stations.

“3CT ticks a large number of boxes and we believe will add substantially and synergistically to the operations and strategic future of Spectur, creating shareholder value well in excess of the purchase price,” Mr Dyson said. 

To read the full announcement and keep up with other Spectur news, you can visit and register your details on the company investor portal.

Reach Corporate provides Corporate Advisory Services, including managing investor communications on behalf of Spectur Limited and will receive fees for its services.

Past performance is not a reliable indicator of future performance.

Sources:

• Forbes, Why 2023 will be the year of AI Education
• 3 Crowns Tech, Smart city solutions
• Spectur Limited, Spectur Limited (ASX:SP3) to acquire 3 Crowns Technologies