ASX-listed wireless vendor, SkyNetGlobal, has acquired home automation distributor, Smart Connect, in a cash and shares deal worth $2.1 million.
As previously reported in ARN, Smart Connect recently signed an agreement to distribute Corinex powerline products to retail chains including Dick Smith, Tandy, Powerhouse, Harvey Norman, Retravision and Domayne. It also has sole Australian distribution rights to the X10 range of home automation products.
Smart Connect will change its company name to W Home Automation and concentrate on getting SkyNetGlobal’s current range of W Home products into retail stores. This includes wireless communications, broadband Internet, home networking, IP telephony, home security and automation. The existing Smart Connect business is expected to generate revenues of $6.62 million for the current financial year.
SkyNetGlobal CEO, Jonathan Soon, said the acquisition would help the company establish its W Home brand in the home automation market and introduce its wireless prepaid products to the consumer market through retail chain outlets.
In other news, SkyNetGlobal has announced revenues of $4.37 million for the financial year ending June 30 — a rise of 684 per cent on the previous 12 months. This provided the company with a net profit of $79,000, the first time it has been in the black since its inception.
SkyNetGlobal announced a net loss of $6.8 million in the previous financial year.
Soon said the company has achieved its aims for the year — getting out of infrastructure, increasing sales and becoming profitable.
“We are extremely pleased with the results, especially because this is our first profitable year,” Soon said. “That is a major milestone for any company.”