Report
Mike Jeremy

Centricus combination declared Effective by SEC

Following unanimous approval by both companies’ Boards, on 2 August Arqit announced that that the SEC has declared effective the registration statement in connection with the proposed combination of Arqit with NASDAQ-listed Centricus, a major step towards the final deal. Centricus will hold an EGM for shareholders at 0900 (ET) on 31 August to approve the associated proposals.

On 2 August 2021 Arqit also announced release of the first version of its Platform-as-a-Service, QuantumCloud™ 1.0, which offers its clients secure communications channels and data for cloud-based, edge or end-point devices on a global basis. Arqit reports that the service was successfully tested with customers in Q2, with SDKs subsequently being shipped to customers.

As announced in June 2021, Arqit also established its Federated Quantum System (FQS) to meet governmental preferences for “Private Instances” access to secure cloud technology, in collaboration with industry leaders.

The market for data encryption is estimated by experts to reach c.US$198bn by 2024. A combination with NASDAQ-listed Centricus would give Arqit a well-timed base to access this sizeable opportunity for its proprietary quantum-based encryption technology.
Underlyings
Centerenergyholding

Tsentrenergokholding PAO (Tsentrenergokholding OJSC) is a Russia-based holding company, which is engaged in the electric power sector. The Company mainly focuses on the investment and financing activities related to companies engaged in the electric power industry, as well as management of such companies. The Company operates domestically. It has several wholly owned subsidiaries, including OGK-2 OAO and affiliated companies. As of June 30, 2014, the Company's major shareholder was Gazprom Energoholding OOO.

Centricus Acquisition Corp.

Honeywell International Inc.

Honeywell International is a technology and manufacturing company. The company has four segments: Aerospace, which supplies products, software and services for aircrafts; Honeywell Building Technologies, which provides products, software, solutions and technologies including building control and optimization, energy management, access control, video surveillance, fire products, and remote patient monitoring systems; Performance Materials and Technologies, which develops and manufactures chemicals and materials, process technologies and automation solutions; and Safety and Productivity Solutions, which provides products and software that improve productivity, workplace safety and asset performance.

Northrop Grumman Corporation

Northrop Grumman is a security company. The company's segments include: Aerospace Systems, which is engaged in the design, development, integration and production of manned aircraft, autonomous systems, spacecraft, high-energy laser systems, microelectronics and other systems and subsystems; Innovation Systems, which is engaged in the design, development, integration and production of flight, armament and space systems; Mission Systems, which is engaged in end-to-end mission solutions and multifunction systems; and Technology Services, which is engaged in delivering solutions and services in support of mission-critical networks and systems.

Provider
Equity Development
Equity Development

​Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.

Analysts
Mike Jeremy

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