ServTech Global Holdings Limited (ASX:SVT) helps in increasing the profitability of the business through elimination of the excess time and cost burden of administrative tasks and back-office functions via the development and application of customized technology.
The company, on 12th April 2019, announced that it had completed the Acquisition of Vection, which is a software development company based out of Europe. It has advanced Augmented Reality and Virtual Reality development capabilities, which provides practical and commercial software solutions to enable transformational innovation across all industries.
Vection continued to trade business-as-usual and maintained its trend of posting growing revenues before the acquisition. It has posted unaudited revenue representing ~90% increase over the prior corresponding March 2018 quarter, following on from revenue results of ~$1 million during the calendar year 2018. Vection is on track to deliver increased revenue in calendar 2019, since it has completed the first quarter in excess of the prior corresponding period’s revenue.
Vection is continuously building a pipeline of new clients over multiple industries. The current pipeline of near-term contracts stands at ~$320,000, over and above the existing client base and ~270% higher than the corresponding CY2018 period.
As anticipated, Vection’s pipeline will be further strengthened with the addition of ServTech’s existing relationships and the upcoming global launch of the FrameS VR platform.
During the quarter, Vection was successful in delivering software solutions to the Tier 1 clients, including international luxury automotive manufacturer Volvo, international luxury furniture manufacturer Fendi Casa and international luxury yacht manufacturer Ferretti.
The software solutions developed by Vection has an aim to enable adoption of new technologies to transform products, processes and people, which includes Go to Market Strategy, Product Development, Supply Chain Management, Learning & Development, and Risk Management.
The Managing Director of the company communicated that the significant growth had been demonstrated by Vection since incorporation, aligned with the VR/AR software adoption trends worldwide. With the support of ServTech’s existing network and international presence, along with Vection’s Tier 1 client portfolio, it is believed that FrameS has the potential to be significantly adopted by the global market.
The Chairman of the company, Bert Mondello noted that ServTech is working in tandem with the team at Vection to ensure an efficient integration process along with leveraging its existing infrastructure to assist Vection in its marketing efforts. The company is motivated to pursue this transaction backed by Vection’s growth trends, and it will do the most to ensure that the shareholders, who have eagerly supported the transaction, are rewarded accordingly.
On the price-performance front, the stock of ServTech Global Holdings Limited closed the trading day at $0.020 (As on 16 April 2019), an increase of 5.263% as compared to previous close. The company has a market capitalisation of $11.88 million. The stock has generated returns of 72.73% and 58.33% over the past six months and three months period, respectively. Its 52-week high price stands at $0.025, and 52-week low price stands at $0.009, with an average trading volume of 1,018,460.