<article>Malaysian-run<a href="http://www.galasystec.com/" target="_blank"> Galasys Plc</a>, a ticketing systems and solutions provider for the theme park industry in Asia, has acquired I Logic Solutions Sdn Bhd (iLogic) for MYR7 million ($1.97 million).</article>

Malaysian-run<a href="http://www.galasystec.com/" target="_blank"> Galasys Plc</a>, a ticketing systems and solutions provider for the theme park industry in Asia, has acquired I Logic Solutions Sdn Bhd (iLogic) for MYR7 million ($1.97 million).
The company said in a filing on the London Stock Exchange that the acquisition will allow it to “exploit value from iLogic by increasing market share in the Malaysian theme park sector”.
Given its experience and leading position in the ticketing systems solutions segment in Malaysia, the company believed that the integration of iLogic’s online travel agent portal in Malaysia with Galasys’s own new Cloud Online Travel Agency (CLOTA) in China can accelerate the expansion of Galasys’s online business across Southeast Asia.
It also notes that it could leverage on further technology synergies between Galasys and iLogic.
According to the company’s announcement, Galasys has entered an agreement to acquire the entire issued share capital of iLogic for a total consideration that is based on the aggregate of a multiple of two of its audited net profit for financial years 2014, 2015 and 2016) with a maximum amount payable of MYR7 million.
For financial year 2014, the earn-out payment shall be fully in cash, of which an upfront cash payment of MYR400,000 ($112,590) has been paid upon closing of the acquisition.
The announcement added that subject to certain terms and conditions, the earn out payment for financial years 2015 and 2016 shall be paid 50 per cent in cash and 50 per cent in the form of new shares of Galasys.
The shareholders of iLogic have also given a profit guarantee of MYR200,000 ($56,300) for financial year 2014.
The acquisition is the first for Galasys since it was listed on the London Stock Exchange’s Alternative Investment Market in May 2014.
iLogic’s core business is in the consultancy, system study and design, implementation and training of leisure and entertainment software solutions in Malaysia.
Among its solutions are leisure and entertainment solutions, point-of-sales solutions, passenger management system and other implementation and maintenance services, branded as i-Concept.
The company is managed by a team of experts with extensive experience implementing ICT solutions in Southeast Asia.  Its solutions have been used in sites like <a href="http://www.sepangcircuit.com/" target="_blank">Sepang International Circuit</a> where Formula 1 races are held in Malaysia and the National Zoo of Malaysia.
iLogic has also an online travel agency platform that brings theme parks and online travel agencies in Malaysia together under a business-to-business model. The theme parks sell their tickets through the platform, to the online travel agencies.
Galasys chief executive and founder Sean Seah Kok Wah said the acquisition will strengthen and consolidate the company’s market position in Malaysia.
“The acquisition is also timely as it gives Galasys an opportunity to fast track the CLOTA platform launch in Southeast Asia. We are delighted to have closed this acquisition and look forward to the successful integration of iLogic into the group and creating greater synergistic opportunities,” he said in the stock exchange filing.
CLOTA will enable theme park operators to connect their ticketing systems to the virtual platform which is integrated with online travel agencies in China.

Malaysia's Galasys acquires iLogic for $2m

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Malaysia's Galasys acquires iLogic for $2m

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