Data#3 Limited (ASX:DTL) has secured an option to acquire a...

Data#3 Limited (ASX:DTL) has secured an option to acquire a minority shareholding in WiFi analytics company Discovery Technology, with the ability to extend this investment into a controlling position by June 2015 and full ownership by June 2017.

Discovery has been delivering technology and software solutions and providing technical support to small business, corporate and government clients since 1997.

In 2013 the company launched an analytics, location and customer communication software product, the Discovery Connected "Customer-xperience" (CCX) to enable WiFi network owners to create value and potentially monetise their WiFi network infrastructure through analytics, location monitoring and communication combined with delivery media and business applications.

Data#3’s relationship with Discovery commenced in mid-2013 as a reseller of the CCX solution.

Data#3 will retain this reselling relationship on an arm’s length basis and manage it separately from the investment to ensure the integrity of Discovery’s relationship with other resellers of the solution.

Subject to finalisation of due diligence and approval to exercise the option by the Data#3 board, it is expected
that completion will occur in July 2014.

Data#3 intends to fund the investment anticipated to be in the range of $2.5 million from surplus cashflow and will have the right to nominate one director to the board of Discovery.

Full transaction details will be provided on completion.