Sealand Capital Galaxy (LSE:SCGL) signed a conditional agreement to acquire a 60% controlling interest in Finely Technology Holdings for £12 million, valuing the Hong Kong-based technology group at £20 million.
Finely Technology builds enterprise SaaS, cloud-native platforms and IoT connectivity solutions, with its technology already commercialised among intelligent two-wheeled electric vehicle customers across North America, South America and Southeast Asia.
The target turned an audited net profit of $0.96 million on revenue of $6.61 million in its financial year to March 2025, up from $0.43 million profit on $3.73 million revenue the year before, with unaudited FY2026 profit of roughly $1.41 million on revenue of about $5.32 million.
The £12 million consideration splits into £6 million cash, payable in instalments within six months, and £6 million in new Sealand shares issued at 1.2p, with 500 million Consideration Shares to be allotted to the sellers.
Any unpaid cash balance after six months converts to shares at the same 1.2p price.
Finely Technology's controlling shareholder and chief executive, Wei Fengcao, has committed to audited net profit of at least $1.6 million for the year to 31 December 2027; if profit falls below 80% of that target, Sealand can claim cash compensation or unwind the deal with 8% annual interest on consideration paid.
Wei and FT's core management face 36-month retention and non-compete undertakings, though none will join Sealand's board.
"FT is an established and profitable business with proven capabilities across enterprise software, cloud technologies and IoT," said Sealand chief executive Siqi Cao, adding the deal could open opportunities in UK and European sustainable mobility markets.
Completion is targeted by 30 September, subject to regulatory approvals and standard conditions.
News Intelligence what this means for the company
Sealand Capital Galaxy has agreed to acquire a 60% stake in Finely Technology Holdings, a Hong Kong-based enterprise software and IoT group, for £12 million (£6m cash, £6m in shares at 1.2p). Finely is profitable—$1.41m net profit on $5.32m revenue in unaudited FY2026—but the deal is conditional on the seller hitting $1.6m profit by end-2027, with Sealand able to claim cash compensation or unwind if profit falls below 80% of that target. Completion is targeted by 30 September, subject to regulatory approvals.
The acquisition adds a profitable, revenue-generating asset to Sealand's portfolio and signals continued deployment into Asia-Pacific technology, but the deal's value to shareholders depends entirely on Finely hitting its 2027 profit guarantee—a material execution risk given the company's unaudited FY2026 results and the 36-month retention of its controlling shareholder and CEO.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
