Despite an ongoing climate of economic uncertainty, Grant Thornton Malta’s advisory team has managed to assist the HandsOn Group with seeing through the sale of a minority stake to Melita Ltd, one of Malta’s leading telecommunications services providers and a leader in innovative solutions relating to the Internet of Things (IoT).

HandsOn specialises in telematics and IoT solutions, with its three main product lines being automotive fleet tracking and management, inventory tracking through RFID and usage-based insurance services.

While group operations are primarily based in Malta, subsidiaries have recently been set up in Italy, Ghana and Oman. Prior to engaging Grant Thornton as corporate advisors, the HandsOn Group had been seeking to secure investment through the sale of private equity, in order to form a strategic alliance with a prospective partner that would help the group consolidate its dominant position in the local IoT industry while simultaneously taking advantage of a fledgling international market with huge potential.

In the months leading up to the finalisation of the transaction, Grant Thornton assisted the client with an internal group restructuring. The team also presented the diverse strategic growth options available, and helped the client consider how these types of finance may support the growth plan at HandsOn Group. After the client decided that a private share issue should be the way forward, the advisory services team formulated a business plan for the group and circulated this with prospective interested parties.

The next step by the advisory team was to introduce the executives at HandsOn to prospective acquirers, with whom the client had rounds of discussions to evaluate the possibility of a strategic partnership. Throughout the transaction pro­cess, Grant Thornton’s advisory services team was responsible for drafting and submitting all relevant documentation, and for carrying out the necessary due diligence from the vendor’s perspective for the deal to go through.

The team also assisted HandsOn with evaluating different offers made by prospective acquirers. HandsOn chose Melita as a strategic partner that could offer clear synergies through their next-generation networks and their IoT offerings in Malta and internationally.

Geoffrey Farrugia, HandsOn CEO, said: “This investment will assist our growth plans, particularly internationally, where there are clear synergies between our solutions and Melita’s connectivity.”

On Grant Thornton’s role in the transaction, Farrugia complemented the team, stating they were “very instrumental in securing the investment with Melita. Their technical ability and professionalism helped the company prepare itself for the new set-up.”

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