Falanx Group Limited Acquisition of Cloudified Ltd (1610K)
05 July 2017 - 4:32PM
UK Regulatory
TIDMFLX
RNS Number : 1610K
Falanx Group Limited
05 July 2017
Falanx Group Limited
("Falanx" or "the Company")
Acquisition of Cloudified Ltd
Falanx Group Limited (AIM: FLX) a cyber defence and intelligence
provider working with blue chip, SME and government clients
worldwide, is pleased to announce it has acquired the entire issued
share capital of Cloudified Limited ("Cloudified") for a total
consideration of approximately GBP180,000 ("Acquisition").
Acquisition
Cloudified a profitable Software Defined WAN (SD-WAN) vendor
specialising in building cost effective Wide Area Network solutions
for SME's, has provided its products to major telcos and ISP's,
such as BT and Daisy Plc. Having benefited from the investment of
GBP0.5m in the development of its IPR, Falanx bid to acquire its
unique assets and contracts, which having achieved a profit of
GBP3.7k and revenue of GBP12k in the year to 31 May 2017, the Board
recognised as significant shareholder value. The Board decided to
acquire on the basis of being able to utilise the Cloudified
technology in the MidGARD platform, grow the existing SD-WAN
accounts and acquire the exceptional software development team.
Cloudified's technology stack brings a significant amount of
additional IPR to Falanx's development program. Cloudified's core
connectivity technology and data management and monitoring platform
complements Falanx's MidGARD. The acquisition of these technologies
allows Falanx to significantly accelerate the launch of its
SME-focussed offering, MicroSOC.
Cloudified was founded in 2010 by Daniel Waite, its Managing
Director and majority shareholder, building on technology he
developed over the previous 8 years. Mr Waite is a proven
technology innovator, and has 20 years' experience working in
technology, with several hands-on, technical roles and has provided
consultancy for global enterprises in both finance and
communications sectors as well as successfully building and leading
teams. He has a very good track record in bringing innovative
products to market rapidly that bring clear and tangible value.
Daniel will now become Head of Software Development of Falanx Cyber
Technologies, driving research, innovation and development of our
MidGARD platform and future Cyber Defence products.
To satisfy the consideration for the Acquisition, Falanx will
issue 1,122,807 new Ordinary Shares at 7.125p per share and pay
GBP100,000 in cash to the shareholders of Cloudified, valuing the
entire issued share capital at approximately GBP180,000. The
Ordinary Shares to be issued to Mr Daniel Waite, are subject to
lock-ins expiring on 3rd July 2019 with a subsequent 12 month
agreement of orderly market provisions via Falanx.
Admission of the new Ordinary Shares to trading on AIM
Application will be made for the admission of 1,122,807 new
Ordinary Shares to be issued pursuant to the Acquisition to trading
on the AIM Market of the London Stock Exchange, which is expected
to take place on or around 8.00 a.m. on 10 July 2017 ("Admission").
Completion of the Acquisition and is conditional on Admission
becoming effective. The new Ordinary Shares will, when issued, be
credited as fully paid and will rank equally in all respects with
the existing Ordinary Shares, including the right to receive any
dividend or other distribution declared, made or paid after
Admission.
Following Admission, the Company's enlarged issued share capital
will comprise 156,540,075 Ordinary Shares carrying one vote per
share. The Company does not hold any Ordinary Shares in
treasury.
Chief Executive Officer, Stuart Bladen said:
"I am delighted to announce the acquisition of Cloudified which
enables Falanx to broaden its reach and enhance its SME-focussed
offering which it is about to launch in the coming months. The
acquisition also brings the considerable skillset of the team and
in particular its founder Daniel Waite who will help drive
research, innovation and development of our MidGARD platform and
future Cyber Defence products. We are delighted to include Mr Waite
amongst our growing operational management team."
Enquiries:
Falanx Group Limited www.falanx.com
Stuart Bladen, Chief Executive
Officer
--------------------------------- ----------------------
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Whitman Howard Limited
Joint- Broker
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Turner Pope Investments
(TPI) Ltd
Joint-Broker
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IFC Advisory Ltd
Graham Herring
Miles Nolan +44 (0) 203 053 8671
This information is provided by RNS
The company news service from the London Stock Exchange
END
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