The Board of Directors of Radiant Globaltech Berhad (RGTECH) executed a legally binding term sheet with Un Sze Hau (Vendor) which sets out the transaction structure and understanding of a proposed acquisition of 80% equity interest in Rymnet Solutions Sdn Bhd (Rymnet) for a total purchase consideration of RM52.5 million.
In a Bursa filing today, RGTECH said the proposed acquisition is conditional upon the completion of the acquisition of the entire equity interest in Singapore-based Rymnet Solutions Pte Ltd (Rymnet SGP) by Rymnet, which would result in Rymnet SGP being its wholly-owned subsidiary.
The terms of the Proposed Acquisition will be formalised in a conditional share purchase agreement (SPA) to be entered into by both Parties within 30 days from the date of the Term Sheet or at an extended period to be mutually agreed by both Parties.
Rymnet is an established information technology solutions provider, focusing on the digitalisation of human resource management operations. The proposed acquisition will bode well with RGTECH's business strategic plans to widen and diversify its IT solution offerings.
Rymnet was incorporated in Malaysia under the Companies Act 1965 on 27 November 2003 as a private limited company and is deemed registered under the Companies Act 2016 under the name Sourcenet Consulting Sdn Bhd. Subsequently, it adopted its current name, Rymnet Solutions Sdn Bhd on 16 May 2011.
RGTECH and its subsidiaries (RGTECH Group) offers proprietary retail management solutions and mobile applications which includes retail and food & beverage management software, warehouse management system, proof of delivery, payment gateway, and integrated maintenance system. The Group also provides industrial software solutions, including back-end inventory tracking and management, as well as sales automation systems.
Through the proposed acquisition, the Group will be able to incorporate HR management system modules into its existing suite of solutions, thereby offering a more comprehensive and integrated service to its customers. This enhancement not only improves the value proposition for potential customers but also generates significant cross-selling opportunities with existing customers.