FirstWave Cloud Technology to acquire Opmantek Limited

FirstWave Cloud Technology to acquire Opmantek Limited

SYDNEY, AUSTRALIA: FirstWave Cloud Technology Limited (ASX: FCT) proposed acquisition of Opmantek Limited Opmantek), a fast-growing provider of enterprise-grade network management, automation and IT audit software to Managed Service Providers (MSP) and medium-to-large businesses world-wide.

Opmantek is incorporated in Australia with a headquarters in San Francisco and offices in Australia, USA and Mexico.

FirstWave Cloud intends to acquire 100% of Opmantek via an all-scrip takeover under which approximately 691 million new FirstWave shares will be issued to Opmantek’s shareholders.

Opmantek’s shareholders holding more than 80% of Opmantek’s shares have committed to accept the Offer and Opmantek’s board unanimously recommends shareholders accept the Offer (in the absence of a superior offer).

Following completion of the Acquisition and Equity Raising, Opmantek shareholders will hold approximately 42% of FirstWave’s issued shares.

 The acquisition  will be transformative for FirstWave Coud, bringing substantial operational, financial and strategic benefits including:

• Product Expansion – FirstWave’s product portfolio will expand to provide an end-to-end solution for network discovery, management and cybersecurity

• New Channels – New global MSP channel and a direct sales force serving mid-market and enterprise customers that include Microsoft, Telmex, NextLink and NASA

• US Market Access – Immediate access to the large and lucrative US market with approximately 60% of Opmantek’s Annualised Recurring Revenue (ARR) coming from North America (including Canada, Mexico, and USA)

• Additional SaaS Revenue – Opmantek is a fast-growing SaaS business that generated $3.4m of ARR at 100% gross margin in June 2021

• Synergies – Substantial cross-sell and up-sell opportunities and immediate cost synergies estimated at $2m

• Strengthened Leadership Team – Opmantek’s major shareholder and Executive Chairman, Danny Maher to become FirstWave’s Managing Director, and CEO and US-based Craig Nelson to become Chief Revenue Officer and Head of Global Sales.

FirstWave Executive Chairman, John Grant, said: “Rarely do you find two companies that fit together as perfectly as FirstWave and Opmantek. In a case of the whole being greater than the sum of its parts, both companies bring highly complementary business models, product offerings and geographic footprints.

The combination significantly expands the growth potential of both companies by providing truly global reach, an expanded product portfolio and material operational, strategic and financial benefits.

 “For FirstWave this is a transformative transaction, as we will gain access to Opmantek’s channel partners and sales force in the US, the world’s most lucrative market for cybersecurity, as well as Canada and Latin America, both large markets where we do not currently have a foothold. We will also benefit from the experience and leadership of Opmantek’s Executive Chairman, Danny Maher, who will become CEO and MD of FirstWave on completion.”

Opmantek’s Executive Chairman, Danny Maher, said: “The acquisition by FirstWave will enable the integration of Opmantek’s software onto FirstWave’s CyberCision Open Security Management Platform and create an end-to-end solution for network discovery, management and cybersecurity that is globally unique. I will be joining as FirstWave’s CEO and am excited by a belief that we have an incredible opportunity to be the automated network and security management platform of choice for MSPs globally.”

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