News: S3 ID acquired by CSE Global in £7.65m deal
Singapore listed CSE Global has acquired 75% of S3 ID, the Rotherham-based provider of cutting edge location awareness solutions.
S3 ID has developed a range of specialist hardware and software products that provide real-time personnel location awareness, mustering and access control. They are used in working environments where a major incident would be catastrophic such as oil, gas and petrochemical plants.
Originally formed in 2008, the major exporter recently expanded into new premises in Templeborough where it employs 35 staff. Customers for S3 ID products include Statoil, Shell, BP, Eni and Conoco Philips and the company reported profits of just over £1m for the year ended December 2012.
CSE Global Limited (CSE) is an international technology group listed on the Singapore Stock Exchange. With over 1,800 employees worldwide, it provides integrated solutions to industries in the automation, telecommunications, healthcare and environmental sectors.
Through its subsidiary, CSE One Pte. Ltd, CSE has acquired 75% of S3 ID from Derek Gennard, the CEO of S3 ID, Finance Yorkshire, Cybline AS and several smaller shareholders in a deal worth £7.65m.
As part of the deal, CSE has an option on the remaining 25% of the issued share capital. Assuming a minimum target is achieved by S3 ID over the next three years, CSE will be obliged to pay an amount of £6.125m for the 25% share.
The acquisition of the specialist firm will enable CSE to increase products and services offered to the oil and gas industry.
S3 ID was the first investment completed by Finance Yorkshire's Equity Linked Fund in January 2011 and the sale represents the first exit for the provider of seedcorn, loan and equity linked investments. It has made an aggregate return of £3.4m from an original investment of £1.6m.
Ian Brown, portfolio director at Finance Yorkshire, said: "S3 ID is a fast growing company which has genuine prospects for further growth. We are pleased that Finance Yorkshire has been able to assist the business over the last three years and there is a realistic prospect this Yorkshire business can continue to grow and become a major player in the oil and gas sector.
"The business was in need of additional working capital to fund the size of projects it is now involved with and to support future growth on a world-wide scale. CSE Global has the sector expertise and the sufficient financial backing to provide the funding needed to achieve that ambition."
Derek Gennard, CEO of S3 ID, added: "The Finance Yorkshire team worked hard with us in the early days and their advice and investment was a key factor in our success. We have created nearly 30 permanent jobs in the South Yorkshire region as a direct result."
Eversheds in Nottingham, led by M&A partner Antony Walsh, advised on the sale of the company. Hill Dickinson in Sheffield, led by partner Paul King, advised CSE.
S3 ID website
Finance Yorkshire website
Images: Finance Yorkshire
S3 ID has developed a range of specialist hardware and software products that provide real-time personnel location awareness, mustering and access control. They are used in working environments where a major incident would be catastrophic such as oil, gas and petrochemical plants.
Originally formed in 2008, the major exporter recently expanded into new premises in Templeborough where it employs 35 staff. Customers for S3 ID products include Statoil, Shell, BP, Eni and Conoco Philips and the company reported profits of just over £1m for the year ended December 2012.
CSE Global Limited (CSE) is an international technology group listed on the Singapore Stock Exchange. With over 1,800 employees worldwide, it provides integrated solutions to industries in the automation, telecommunications, healthcare and environmental sectors.
Through its subsidiary, CSE One Pte. Ltd, CSE has acquired 75% of S3 ID from Derek Gennard, the CEO of S3 ID, Finance Yorkshire, Cybline AS and several smaller shareholders in a deal worth £7.65m.
As part of the deal, CSE has an option on the remaining 25% of the issued share capital. Assuming a minimum target is achieved by S3 ID over the next three years, CSE will be obliged to pay an amount of £6.125m for the 25% share.
The acquisition of the specialist firm will enable CSE to increase products and services offered to the oil and gas industry.
S3 ID was the first investment completed by Finance Yorkshire's Equity Linked Fund in January 2011 and the sale represents the first exit for the provider of seedcorn, loan and equity linked investments. It has made an aggregate return of £3.4m from an original investment of £1.6m.
Ian Brown, portfolio director at Finance Yorkshire, said: "S3 ID is a fast growing company which has genuine prospects for further growth. We are pleased that Finance Yorkshire has been able to assist the business over the last three years and there is a realistic prospect this Yorkshire business can continue to grow and become a major player in the oil and gas sector.
"The business was in need of additional working capital to fund the size of projects it is now involved with and to support future growth on a world-wide scale. CSE Global has the sector expertise and the sufficient financial backing to provide the funding needed to achieve that ambition."
Derek Gennard, CEO of S3 ID, added: "The Finance Yorkshire team worked hard with us in the early days and their advice and investment was a key factor in our success. We have created nearly 30 permanent jobs in the South Yorkshire region as a direct result."
Eversheds in Nottingham, led by M&A partner Antony Walsh, advised on the sale of the company. Hill Dickinson in Sheffield, led by partner Paul King, advised CSE.
S3 ID website
Finance Yorkshire website
Images: Finance Yorkshire
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