November 14 (SeeNews) - Bulgarian IoT products maker Allterco [BUL:A4L] said it will ask its shareholders for an authorisation to acquire Slovenian sector player GOAP d.o.o. Nova Gorica in two stages for a price of up to 5.5 million euro ($2.9 million) based on pre-agreed performance-related terms.
The company is calling an extraordinary shareholder meeting on December 13, Allterco said in a bourse filing published late on Friday.
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In the first stage of the deal, the Bulgarian company plans to buy a stake of 60% for 2 million euro. Of that, 700,000 euro will be paid in exchange for a combined 30% holding of GOAP from CEO Leon Kralj, who owns 45.43% of the target company's equity, as well as from senior executives Bojan Sirk and Marko Danevcic. Allterco will pay a further 1.3 million euro for the other 30%, held by Slovenian mobility components and systems maker Kolektor Mobility.
The buyer will also agree call and put options with Leon Kralj, Bojan Sirk and Marko Danevcic for the remaining 40% of GOAP's equity, at an overall price of between 700,000 euro and 3.5 million euro, depending on the fulfilment of prior conditions.
Allterco first unveiled talks for the acquisition of GOAP in June, as part of a strategy to enter new markets and expand its product portfolio of home automation systems with the addition of smart systems for cruise ships.
Founded in 1990 and based in Solkan, western Slovenia, GOAP specialises in solutions for home automation modules and systems. The company is broadly known for its Qubino unit which makes smart home devices under the Z-Wave wireless communication protocol. GOAP also claims to have a 50% share of the market in cruise ship automation devices.
Last month, Allterco reported a 50% annual rise in preliminary revenue from sales of IoT devices to 57.7 million levs ($30.4 million/29.5 million euro) in January-September.
The company has said that it will partly fund the purchase of GOAP through a share buyback.
($ = 0.968871 euro)