Square One Law’s experienced team completes reverse takeover
FAST-GROWING Square One Law has advised the owners of a Leicester-based technology firm on its purchase by an AIM-listed cash shell. The transaction saw Synety reverse into London based Zenergy Power plc, which has been renamed Synety Group plc.
Synety has developed a cloud-based communications service called Cloud Call which gives organisations the ability to make, receive and record telephone calls from existing software such as email, web browsers and smartphones.
The deal is a reverse takeover under the AIM Rules and as such needed the approval of Zenergy shareholders. This was achieved on September 25 and provides the business with £4 million of capital to fund the rollout of its Cloud Call product globally.
Synety’s Mark Seemann and Graham Ward will be chief executive and non-executive director respectively, of the new company.
The deal has seen the three sellers of Synety – Mark Seemann, Jason Kendall and Graham Ward issued with 29.96% of the shares in Zenergy plus cash and additional consideration will be paid through an earn out structure.
Square One Law’s team led by Jeremy Swift and supported by John Hammill and Jemil Visram acted on behalf of Synety, and worked closely with City Firm Lawrence Graham who advised Zenergy. Steve Lant from UNW provided advice on tax.
Simon Cleaver, executive chairman said: “We are delighted to be able to announce the proposed acquisition of a leading-edge technology company which operates in a software segment with proven growth characteristics.
“The vast majority of customer relationship management software providers have inbuilt functionality to send, receive and record e-mail activity, but only a very limited number have similar functionality when it comes to telephone communication, which is where we see the potential in Synety.”
“This was a complex transaction made easier by the contribution of Jeremy and his team at Square One Law. I have now worked with Jeremy on several stock exchange transactions over the years and had no hesitation in recommending him for this project.
Square One Law’s senior partner, Ian Gilthorpe, said, “We launched the firm last year and its new entrepreneurial model and fresh approach to legal services has attracted heavyweight lawyers, from leading regional and national firms.
“Our partners have many years of experience with major law firms advising UK and International businesses and have well established networks. Head of corporate, Jeremy Swift joined us as a partner from Dickinson Dees at the beginning of May and has extensive public company experience having worked on over 13 IPOs, 20-30 secondary fundings as well as public takeover offers.
On this transaction Jeremy was supported by John Hammill for corporate as well as Jemil Visram on the public company side and who we have recently recruited from Slaughter and May to support the firm’s aspirations in developing its stock market transactional resource.”
Over the past 18 months Jeremy Swift’s experience has included acting as lead partner for Panmure Gordon on a £5 million placing for Avacta, Capita Energy International Plc on an aborted IPO, a £10 million placing by Opsec and a £5 million placing as well as a £30 million capital reduction scheme for NetPlay TV.
Jeremy said, “I am delighted we have completed this deal as it demonstrates that Square One Law is punching above its weight.”
Square One Law was founded last year and now has eight partners and a team of over 30 people.