Creative Newtech Ltd has announced the 100% acquisition of Zicom SaaS Private Limited for an enterprise value of Rs 50.50 crore. The deal involves Rs 25 crore in cash and Rs 25.50 crore via a preferential share swap. This move aims to integrate subscription-based security services into Creative Newtech's existing distribution model. Additionally, the company plans to set up a Singapore subsidiary to optimize supply chain procurement. Shareholders will vote on the preferential issue at an EGM on 28th November 2026.
Creative Newtech Acquires Zicom SaaS for Rs 50.50 Crore
Enterprise Value: Rs 50.50 crore | Acquisition Stake: 100% of Zicom SaaS
Reader Takeaway: Expansion into recurring security service revenue streams marks a shift from core distribution to integrated solutions.
What just happened
Creative Newtech Ltd has formally approved the acquisition of the entire paid-up equity capital of Zicom SaaS Private Limited. The deal is structured at an enterprise value of Rs 50.50 crore. The consideration includes a cash component of Rs 25 crore and a share swap arrangement valued at Rs 25.50 crore. As part of this, Creative Newtech will issue 2,25,000 equity shares at a price of Rs 1133.33 each to Onyx SaaS Private Limited.
Why this matters
This acquisition marks a strategic pivot for Creative Newtech. While historically focused on technology distribution, the company now intends to capture market share in the electronic security and surveillance space. By integrating Zicom SaaS’s command center operations and managed security infrastructure, the company aims to move toward a recurring subscription-based revenue model. This should potentially improve long-term margin profiles by reducing reliance on one-time product sales.
Singapore Subsidiary
Beyond the acquisition, the board has approved the incorporation of a wholly-owned subsidiary in Singapore. With an initial capital outlay not exceeding USD 10,000, this entity is designed to centralize and optimize international procurement. The goal is to lower sourcing costs and improve supply chain efficiency for the group’s broader operations.
What to track next
The immediate focus for investors is the Extraordinary General Meeting (EGM) scheduled for 28th November 2026. Shareholders must formally approve the preferential share issue to facilitate the deal. Post-approval, the market will look for details on the operational integration of Zicom SaaS and whether the projected recurring revenue targets are met in subsequent quarterly filings.