tTech Limited, the Kingston-based information technology provider, has signalled that its shareholders could soon receive a bid for their holdings from Simply Secure, a Florida-based managed security services provider.

The announcement came in a release Friday, just a day after trades on Jamaica Stock Exchange showed an entity, now identified as Simply Secure, bought more than 52 million of its shares, or 49.1 per cent of the entity, from Edward “Teddy” Alexander and Gordon Christopher Reckord. The total cost of the stake was over $114 million.

“In light of the fact that the acquisition is beyond the 20 per cent threshold of the issued and outstanding ordinary shares of the company, tTech has duly notified the Jamaica Stock Exchange and the Financial Services Commission, pursuant to the applicable JSE Junior Market Rules (Appendix 2) and the applicable regulations promulgated under the Securities Act that relate to takeovers and mergers,” a notice released Friday said.

It added that Simply Secure has indicated it intends to acquire more shares in tTech, and “upon the acquisition of 50 per cent or more of tTech’s shares it will extend an offer to all remaining tTech shareholders to purchase their shares. This intended offer to the remaining shareholders will be contingent on the completion of additional due diligence, finalisation of the terms of the offer, review by the tTech board, and approval by the regulators”, the notice added.

Both tTech and Simply Secure say they are committed to abiding by the regulations guiding mergers and takeovers in moving forward.

tTech said with the acquisition, it is expecting that synergies between tTech and Simply Secure will enhance the services provided by tTech, particularly in the area of cybersecurity.

The company also pointed out that the acquisition means there will be some changes at the director and management levels in tTech. Norman Chen resigned as the company’s chief executive officer while co-owners of Simply Secure, Kevin Gordon and Rob Mayo-Smith were appointed as directors of the company. Chen continues to serve as a director.

However Edward Alexander, who continues as chairman of the board, stated: “I am confident that Simply Secure’s involvement will bring new resources and expertise to tTech Limited. Their focus on managed security services aligns perfectly with our strategic goals.”

Kevin Gordon, the CEO of Simply Secure LLC, stated, “Under this new arrangement Simply Secure and tTech are committed to leveraging greater resources to meet the growing demand for managed security services. The primary focus will remain the delivery of exceptional value to our customers and optimal growth opportunities for our employees.”