VCPlus to acquire APEC Solutions for S$5M in all-share deal

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VCPlus has entered a deal to acquire APEC Solutions, a developer of blockchain and fintech services, from Cedric Yap Kun Hao for S$5 million in VCPlus shares, the Catalist-listed company said in a filing to SGX Monday.

The VCPlus shares will be issued at S$0.029 each, a 16 percent premium to the volume weighted average price of the shares on Monday, the filing said. The consideration shares represent around 3.95 percent of the existing share capital, and around 3.8 percent of the enlarged post-deal share capital, the filing said.

In April, VCPlus had announced it planned to diversify into the technology sector, including advisory, consultancy and management services related to fintech regulation and licencing.

APEC Solutions’ services include blockchain and fintech development, enterprise software services, e-commerce and digital marketing services, the filing said.

“This acquisition allows VCPlus to grow its capabilities to serve the growing blockchain and FinTech technology sector,” Clarence Chong Heng Loong, CEO of VCPlus, said in the statement. He cited data from KPMG estimating global fintech investments rose to US$98 billion in the first half of this year, from US$87 billion in the second half of 2020.

VCPlus said the acquisition was a strategic move to tap the expertise, resources and network of APEC Solutions as taking over the tech team will reduce the cost and time spent acquiring and training talent.

“VCPlus will also stand to gain from APEC Solutions’ expertise and experience in advising companies on licensing requirements and applications in Singapore, while also taking over its existing partnerships blockchain solutions companies, which can further augment VCPlus’ capabilities for its blockchain business,” the filing said.

VCPlus has two businesses: Its legacy granite dimension stone segment, which operates two quarries in Malaysia, and its newer fintech business.