According to a statement issued on May 9th, Sarine Technologies Ltd. has finished the acquisition of Gem Certification & Assurance Lab (GCAL). By combining GCAL‘s quality procedures and Sarine‘s cutting-edge technologies, the acquisition opens the door to tremendous growth prospects both domestically and internationally.
The skilled management team from GCAL will be in charge of the combined firm, GCAL USA LLC, and will keep a sizable stake in it as part of the agreement.
In these times of geopolitical upheaval, quick, precise, consistent, and efficient grading—as well as optional provenance data—are crucial, and the combination is anticipated to give the US and other markets a much-needed solution. The companies hope to expand their grading services globally by utilising Sarine‘s cutting-edge AI grading technology.
70% of GCAL USA LLC will be owned by Sarine, for a total cash transaction price of $5.65 million USD. Without accounting for additional immediate cost savings of an estimated US$ 0.5 million per year or possible cost reductions of up to an additional US$ 0.5 million per year, the merger is anticipated to boost the Group’s profitability by about 7% on a proforma basis based on 2022 results.