The Harvest Technology (ASX:HTG) share price is on watch. Here’s why

The Harvest Technology Group Ltd (ASX: HTG) share price is on watch after news the company intends to acquire SnapSupport broke this morning.
The post The Harvest Technology (ASX:HTG) share price is on watch. Here’s why appeared first on The Motley Fool Australia. –

asx 200 share takeover represented by man drawing illustration of big fish eating little fish

Harvest Technology Group Ltd (ASX: HTG) shares are on watch today after the company released news of an acquisition this morning. The industrial communications group said the acquisition would mark the start of its expansion into the United States and international markets.

The Harvest Technology share price closed yesterday’s session at 33 cents.

Let’s take a closer look at the company’s announcement. 

Acquisition underway 

Harvest Technology announced today it has signed a binding term sheet to acquire US-based SnapSupport Inc., a software as a service (SaaS) provider.  

The company also said it will accelerate its strategic swing towards a SaaS business model.

SnapSupport works to help remote field workers during equipment failures. It provides real-time visual and augmented-reality-enabled support to help fix issues quickly.

According to Harvest Technology’s release, SnapSupport’s business model fits well with its own. Harvest Technology provides connectivity solutions for the energy, resources and renewable sectors. 

The deal on the table is for the company to pay approximately $2.59 million worth of Harvest Technology shares, paid over two instalments, to acquire SnapSupport. Half will be paid on completion of the acquisition, the other half will be due 12 months later.

The acquisition deal hangs on some key terms – due diligence, a purchase agreement, and an employment agreement for a key employee.

Commentary from management

Harvest Technology’s managing director Paul Guilfoyle commented on the potential acquisition, saying:

The acquisition of SnapSupport, who have commercially viable solutions that are already supporting largescale global customers with over 900 active users at any one time, will provide us with a fast and cost-effective pathway to speed-up the global rollout of our SaaS business model.

The SnapSupport mobile platform is proven, fit-for-purpose and can quickly and efficiently harness the advantages of our own Industrial Grade Connectivity capability.

Harvest Technology share price snapshot

The Harvest Technology share price has been performing well on the ASX lately.

Currently, it is up 6% year to date. It’s also up by 175% over the last 12 months.

Harvest Technology has a market capitalisation of around $162 million, with approximately 493 million shares outstanding.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Harvest Technology (ASX:HTG) share price is on watch. Here’s why appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!