Harris Technology acquires Australian blockchain company in $2.4M deal
- 18 January, 2019 11:36
Garrison Huang (Harris Technology)
Harris Technology has signed a binding agreement to acquire Lincd HQ, an Australian-based software company.
Established in 2011, Lincd HQ provides a platform that connects legacy software to blockchain protocols. It also provides advisory, strategy, technology, token economics, and labs.
With the acquisition, Harris Technology expects to deploy blockchain solutions internally to improve the competitiveness of its ecommerce business including the possibility of launching a royalty program using blockchain technology.
Publicly-listed Harris Technology will acquire Lincd HQ from its parent company First Growth Funds, who is also listed with the Australian Securities Exchange (ASX).
The deal is subject to approval by Harris Technologies' shareholders.
The acquisition is valued at $2.4 million, which is planned to be paid in a share purchase agreement (SPA) in three tranches.
The first would see Harris issuing 30,000,000 fully paid ordinary shares, followed by a second issue of 20,055,334 options and the issue of 20,000,000 options to acquire fully paid ordinary shares in Harris Technologies.
If Harris' shareholders do not approve the SPA the company could make a cash payment to First Growth Funds (FGF).
Other terms of the acquisition include the repayment of FGF's US$250,000 loan to Lincd with repayments to be made from new revenue generated.
Prasanth Kumar Rasam, Lincd's founder, will remain managing director of the company as part of the agreement.
"We are excited by the acquisition of Lincd to enable Harris Technology to leverage blockchain technology and the possibilities it provides our ecommerce business," said Garrison Huang, CEO at Harris Technology.