Quantify Technology has today announced it will acquire 100% of the share capital of GSM Innovations (GSM-I), also known as Zimi Powermesh.
UPDATE: The Notice of Meeting and Independent Expert’s Report has been released. Read more HERE.
GSM-I is a wholly owned subsidiary of Gerard Private Holdings and produces a range of connected devices that can be installed by any electrician with the ability for end-users to setup and configure the devices as desired.
The Zimi Powermesh product range, which is distributed through GSM Electrical (also known as Trader), Beacon Lighting and Steel-line Garage Doors, controls lights, fans, appliances, switches garage doors and more. The technology is scalable for partial to complete home solutions and can accommodate a variety of budgets, while being suitable for both new and existing homes.
The Gerard family’s electrical tradition spans 100 years of supplying quality electrical products to millions of Australians, including the development of Clipsal C-Bus, one of the leading home automation brands that was acquired by Schneider Electric in 2003.
Quantify Technology CEO Brett Savill said the partnership has a lot of potential.
“We have been looking for the right partner for some time and could not be more delighted to be working with Simon, Jordan and Gerard Private,” Brett said.
“Home automation is rapidly maturing meaning it is important to have multiple channels and a broad range of products. Quantify Technology’s acquisition of GSM-I is a real case of one plus one making three.”
Gerard Private’s CEO Simon Gerard agrees.
“When we founded GSM-I three years ago, I knew we needed access to third party capital to achieve our full potential. This Acquisition provides not just capital but broadens the product range at the same time,” Simon said.
“Electricians and other distributors are clamouring for reliable, cost-effective, Australian smart home automation which is what we deliver. I’m really excited about the future.”
The Acquisition brings the following synergy benefits to the Company:
- Cross-sell a more complete family of connected products. GSM Electrical trading under the brand, Trader, will be the exclusive distributor into the electrical wholesale market under an initial three-year agreement whereby it will distribute, promote, stock and sell the GSM-I products into the more than 900 electrical wholesalers across Australia.
- The team will be strengthened with Simon Gerard joining the board and Jordan Tentori to be appointed as Chief Technology Officer, as well as joining the board.
- There will be reduced costs from combining the two teams. As importantly, the GSM-I manufacturing and logistics’ relationships will result in improved supply chain performance.
- The Company and GSM-I will create a single, powerful software platform for all its connected products resulting in accelerated performance and greater opportunity to use the data.
- Finally, GSM-I has a flexible business model that can both supply product directly and license its intellectual property via existing arrangements with GSM Electrical (owned by Gerard Private), Beacon Lighting and Steel-line. This flexibility will be even more attractive for partners, enabling the Company to expand into new markets and overseas.
The combination of the Company and GSM-I creates a leading domestic player in connected lighting with extensive sales channels in place. Its platform is cloud-based to reduce costs and complexity for distributors and end-users. It is Australian-owned and designed meaning it is tailored to the local requirements, while the licensing model provides a flexible channel to expand into new markets and overseas.
Please note: More information will be released in the coming weeks and months, as things are finalised.
This was originally published as an ASX Announcement which can be viewed HERE.