Creative Newtech Limited targets recurring security services

Creative Newtech Limited plans to acquire 100% of Zicom SaaS Private Limited for approximately Rs 50.50 crore, using its monitoring and subscription capabilities to pursue recurring surveillance-service revenue beyond equipment distribution. The consideration comprises Rs 25.00 crore in cash and approximately Rs 25.50 crore through a proposed share swap.

What is Creative Newtech acquiring from Zicom SaaS?

Creative Newtech is acquiring the entire equity share capital of Zicom SaaS from its holding company, Onyx SaaS Private Limited, in a transaction approved by its board on 4 November 2026. The proposed enterprise value is approximately Rs 50.50 crore, consisting of Rs 25.00 crore in cash and approximately Rs 25.50 crore through a preferential issue of 2,25,000 Creative Newtech equity shares at Rs 1,133.33 each.

Zicom SaaS, established in 2011 as part of the Zicom Group, operates a Security as a Service model rather than only selling surveillance equipment. Its customers can receive surveillance equipment, remote monitoring, maintenance and security-management services for recurring subscription charges, giving the proposed acquisition a service element alongside Creative Newtech's existing cameras, recording equipment and related security solutions.

The non-cash portion would issue 2,25,000 shares to the seller under the share-swap arrangement. Creative Newtech has called an Extraordinary General Meeting, or EGM, for 28 November 2026 to seek shareholder approval for that preferential issue under the Securities and Exchange Board of India, or SEBI, Issue of Capital and Disclosure Requirements Regulations, 2018.

How could Zicom SaaS alter Creative Newtech's revenue model?

Creative Newtech says Zicom SaaS could extend its surveillance business from an initial hardware transaction into monthly or annual arrangements for remote monitoring, maintenance and security management. The change under consideration is from equipment distribution at installation to ongoing services throughout the operating life of cameras, recording equipment and related systems.

The source describes a contrast between Creative Newtech's distribution-led business, supported by channel partners, and Zicom SaaS's subscription-based model for operating security infrastructure. The filing does not disclose revenue, subscribers, margins, contract values or renewal rates for either the existing distribution activities or the target's service contracts.

Creative Newtech sees scope to bundle cameras, recording equipment, installation, remote monitoring and maintenance in coordinated customer offers, subject to commercial feasibility, technical compatibility and customer requirements. For a customer with numerous sites, the proposed mechanism would combine procurement, service management and accountability through one provider rather than separating hardware supply from later monitoring.

Management also identifies cross-selling in both directions. Zicom SaaS's banking, enterprise and residential customers could require surveillance equipment replacements and upgrades, while Creative Newtech's distribution and channel network could broaden the reach of managed-security services; these are stated opportunities, not announced customer contracts or quantified revenue commitments.

Which services would Creative Newtech gain through Zicom SaaS?

Creative Newtech would add Zicom SaaS's 24×7 Command and Control Centre operations, which centrally monitor networks of sites, generate real-time alerts and coordinate incident responses. The infrastructure can remotely supervise bank branches, automated teller machines, or ATMs, retail outlets and other business premises, including the functioning of installed security systems.

Zicom SaaS's ATM Active Deterrence offering uses artificial intelligence, or AI, to detect suspicious activity or equipment tampering. The service can include operator verification, two-way audio warnings and response coordination where installed systems permit, while its Virtual Security Guard combines centrally monitored cameras, sensors and remote intervention to supplement physical guarding at selected locations.

The target also provides surveillance-system health monitoring, using automated alerts for camera malfunction, hard-disk failure, recording interruption and connectivity loss. Its artificial intelligence of things, or AIoT, offerings apply connected devices and AI to energy management, attendance monitoring, footfall counting, and video-based housekeeping and hygiene monitoring.

In residential security, Zicom SaaS's MYCS, or Make Your City Safe, offering includes surveillance, access control and equipment maintenance. Information cited in Zicom SaaS business materials states that MYCS serves more than 4,500 housing societies through a service network spanning more than 800 cities and towns; the target also provides Infrastructure as a Service, or IaaS, for dedicated outsourced monitoring infrastructure and Command and Control Centre arrangements for large customers.

What approvals and execution conditions remain for Creative Newtech?

Creative Newtech's proposed Rs 50.50 crore acquisition remains subject to shareholder and regulatory approvals where applicable, execution of transaction documents and completion of applicable formalities. The immediate disclosed approval milestone is the 28 November 2026 EGM for the 2,25,000-share preferential issue that supports the approximately Rs 25.50 crore share-swap component.

Creative Newtech says the expected benefits will depend on completion and integration, customer adoption, contract economics, capital requirements and execution of the combined strategy. Those conditions are material because the plan combines Creative Newtech's technology-distribution and channel network with Zicom SaaS's monitoring infrastructure, intelligent video analytics, maintenance capabilities and customer relationships.

Management believes the combined hardware and managed-service capabilities could support participation in larger banking, enterprise, industrial, institutional and government surveillance projects that require centralised monitoring and sustained support. The filing provides no project pipeline, post-completion managed-security revenue target, client-retention measure or integration timetable.

Chairman and Managing Director Ketan Patel said Creative Newtech's objective, subject to successful completion and integration, is to build surveillance and managed security services into a significant long-term business vertical. Creative Newtech was established in 1992 and is associated with more than 20 global brands, but the stated objective is not a financial forecast.

Conclusion

The proposed acquisition would combine Creative Newtech's equipment distribution and channel network with Zicom SaaS's 24×7 monitoring, maintenance, analytics and remote-intervention capabilities. The Rs 50.50 crore transaction is therefore intended to create a route from one-time surveillance-product sales toward longer-running service arrangements, while also creating potential equipment upgrades and cross-selling across banking, enterprise and residential customers.

The next disclosed event is Creative Newtech's 28 November 2026 EGM on the 2,25,000-share preferential issue. Beyond that vote, shareholders should watch the unresolved approvals and completion formalities, followed by management's ability to integrate the businesses, secure customer adoption and establish workable contract economics and capital requirements for bundled monthly or annual service arrangements.