Family Zone raises $23m to fund US deal

Family Zone, a cyber security technology specialist based in West Perth, is set to purchase a classroom management business using proceeds from an equity raising.

On Friday, Family Zone announced it had signed a non-binding letter of intent with Virgina-based Verite Educational Services to acquire its Net Ref business for $US4.3 million ($A5.8 million) in cash and scrip.

Net Ref's core technology is a classroom management and learning analytics tool that currently supports more than 450,000 students.

Meanwhile, Family Zone specialises in a system that protects mobile phones, tablets, desktops and laptops, gaming consoles, smart TVs and other devices from cyber security threats.

It expects the Net Ref acquisition will boost its student footprint by about 10 per cent and give the company access to technical and sales expertise in the US. 

Family Zone, led by non-executive chairman Peter Pawlowitsch and managing director Tim Levy, says the deal aligns with the company's strategy for acquisitive growth.

The purchase is subject to a number of conditions including Family Zone completing due diligence on the Net Ref business and approval from the Verite board.

Verite will become a shareholder and technology partner of Family Zone, should the deal proceed.

It will be funded using some of the proceeds from a $23 million share placement, priced at 53.5 cents per share.

The offer represents a 9 per cent discount to Family Zone’s last closing price on June 22.

Argonaut, Shaw and Partners, and Euroz Hartleys are acting as joint lead managers to the raise.

Family Zone says the remaining proceeds will position the company for further potential acquisitions and support continued growth.

“We’re delighted so many of Australia’s institutional investors are recognizing our rapid progression and seek to support our journey to protect and support children in the digital world,” Mr Levy said on Friday.

“This placement enhances our ability to grow and attract new corporate opportunities like the Net Ref business.”

Family Zone shares were up 3.4 per cent to trade at 61 cents, as at 11:42am AEST.