Sensen Networks Ltd acquires Scancam Industries, Australia’s leading provider of AI anti-theft solutions for fuel retailers
The company plans to integrate Scancam technology into its proprietary SenDISA platform to provide additional value to new and existing retail customers.
() () has entered into a share purchase agreement to acquire 100% of the issued share capital of Scancam Industries Pty Ltd, Australia’s leading provider of AI anti-theft solutions for fuel retailers.
The acquisition provides SenSen with a solid foundation to expand into the retail industry, as Scancam’s award-winning AI technology prevents drive-offs at gas stations, solving a major problem for retailers in fuel in Australia.
SenSen will acquire 100% of the issued share capital of Scancam for:
- Initial consideration: A $ 6.5 million (A $ 1 million in cash plus A $ 5.5 million in SenSen common stock subject to shareholder approval); and
- Deferred Consideration: Up to a maximum of approximately AU $ 4.1 million, if Scancam Company’s audited RAA reaches AU $ 3 million within 24 months of completion date – payable in cash or in ordinary shares of SenSen at the option of the SenSen Board.
“Integration of Scancam technology”
This acquisition follows the company’s acquisition of SNAP Networks Surveillance with SenSen integrating SNAP technology into its platform – SenDISA – to develop a revolutionary new product line called SenTRACK which is the first fully automated person tracking solution. to the world over an entire surveillance network.
The combination of Scancam technology for tracking vehicles of interest and SenTRACK for tracking people of interest is expected to provide the world’s first AI data fusion solution to prevent theft in all retail environments, not just fuel retailers.
SenSen CEO Dr Subhash Challa said, “This is an important strategic acquisition for SenSen, a move that not only aligns with our ARR generating growth plans for FY22 and beyond, but also provides a solid foundation and impetus to move towards retail at large. vertical business.
“SenSen looks forward to welcoming the Scancam team to our group and expanding the revenue-generating offerings for Scancam’s high-quality customer base.
“Additionally, by integrating Scancam technology into SenSen’s proprietary SenDISA platform, we can deliver additional value to new and existing retail customers.”
“Increased revenue growth”
Although Scancam developed this solution to solve a serious problem that costs the fuel retail industry around A $ 59 million per year across Australia alone, SenSen’s grand vision is to use it. as a springboard to launch product enhancements and variations to address broader retail theft issues.
Retail crime in Australia is an A $ 9 billion problem, according to the National Retail Association (NRA), and is estimated globally to cost the industry around $ 60 billion annually.
SenSen is particularly excited about this large market and how solutions powered by the combined technologies of enterprises could help deliver a highly effective solution to prevent retail theft on a global scale.
Dr Challa said: “Our scalable digital artificial intelligence architecture is a SaaS solution.
“Our ingenuity offers new and existing customers a capex-free solution – removing what was a barrier to entry for some retailers – and solving a problem that was once considered technically impossible.
“As we acquire more and more gas stations across the country on our network, this will increase SenSen’s margins, further increasing revenue growth.
“We are excited about the potential of this integration to further accelerate annual recurring revenue while improving the margins of our solutions.”
The acquisition supports the growth strategy
A key strategic driver for the acquisition is Scancam’s strong alignment with SenSen’s growth strategy by increasing ARR from adjacent verticals like fuel retail with a strong ARR growth profile.
For FY21, Scancam’s unaudited EBITDA is balanced at moderate profitability with unaudited revenues of ~ AU $ 2.3 million, including annual recurring income (ARR) of ~ AU $ 0.7 million, with an increasing ARR profile.
SenSen is confident that the acquisition will provide strong growth opportunities in the Australian fuel retail industry, which offers organic growth opportunities to expand fuel anti-theft technology to ~ 6,500 service stations from ~ 250 current service stations served by Scancam.
The company has long-standing clients across Australia in Western Australia, Queensland, as well as a growing presence in NSW, Victoria and the Northern Territory.
Scancam’s premier retail customers include BP, Ampol (Caltex), Chevron, Euro Garages (formerly Woolworths Caltex) as well as the Police of Western Australia.
SenSen shares were up 10.4% higher on the day at A $ 0.16.