Ntegrator International, a regional communications network specialist and systems integrator, has taken a big step in diversification by inking a deal relating to the potentially lucrative watch business.
No revenue figure or any other financial figure was disclosed. The vendor is Watchismo LLC. Ntegrator intends to fund the acquisition in cash via internal funds and proceeds raised from proposed private placement1 and/or proposed warrants exercise2. |
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About Watches.com
Based in California, USA, Watches.com is an independent online watch store founded by brothers Mitch and Andrew Greenblatt who are both unique watch enthusiasts. Since 1999, Watches.com has offered rare, unique and affordable timepieces to adventurous enthusiasts. For more see: https://www.ablogtowatch.com/story-behind-watches-com/
The online watch store is a reliable source for unusual modern watches and unheard brands from around the world, curating up-and-coming, trendy brands.
Watches.com retails more than 60 brands ranging from recognized brands like Casio, G-Shock, Fossil and Timex to exciting top selling unique brands like California Watch Co., SISU and Xeric.
Rationale for the LOI
The LOI presents Ntegrator with an exclusive agreement till 30 June 2022 to conduct the necessary due diligence and to examine the opportunity for the proposed acquisition of Watches.com.
Following an EGM convened on 15 December 2021, the Group had received shareholders’ approval for the proposed business diversification into e-commerce and the watch business.
On 12 October 2021, Ntegrator had announced the proposed acquisition of 55.0% in Golden Ultra Limited, which owns the luxury watch online platform www.bestwatch.com.hk, for S$19.2 million.
The proposed acquisition of Watches.com is complementary to the proposed acquisition of Bestwatch.com.hk, focusing on the mid-tier watch market targeting a different consumer base as compared to Bestwatch.com.hk which focuses on luxury time pieces targeting higher spenders.
The proposed acquisition of Watches.com is inclusive of the Domain Names, providing the Group with valuable prime internet addresses gaining instant access to high SEO and high internet traffic.
The Domain Names are consistently ranked among the top searches on the Internet for users looking to buy watches or seeking more information about specific watches.3
 “According to Mordor Intelligence, the global watch market is forecasted to grow at a CAGR of 4.1% from US$61.9 billion in 2020 to US$78.3 billion by 2026.4 Our Group intends to harness algorithms and big data capabilities to scale up the online watch store - Watches.com, transforming it into a buoyant E-Marketplace that derives and maximises income from both watch merchants and watch-buyers alike, creating a cash business with recurring income for the Group. We will continue to pursue earnings accretive merger and acquisition opportunities as we work towards unlocking greater and sustainable shareholder value in the long run.” -- Christian Kwok-Leun Yau Heilesen, Executive Director of Ntegrator |
1 Company announcement dated 25 May 2021
2 Company announcement dated 1 January 2022
3 Daily Searches for “Watches” or “Watch” on Google and Yahoo
4 Mordor Intelligence, Watch Market - Growth, Trends, COVID-19 Impact, and forecasts (2021 - 2026), 2020