Danny Maher (Opmantek)
Publicly listed FirstWave Cloud Technology is to acquire Queensland-founded network management, automation and IT audit software provider Opmantek in a deal valued at $62 million.
As a result of the agreement, Opmantek's executive chairman Danny Maher will become FirstWave’s managing director and CEO, replacing the recently departed Neil Pollock.
FirstWave will acquire 100 per cent of Opmantek via an all-scrip takeover under which approximately 691 million new FirstWave shares will be issued to Opmantek’s shareholders.
Following completion of the deal, Opmantek shareholders will hold approximately 42 per cent of FirstWave’s issued shares. A spokesman for FirstWave confirmed to ARN that despite the share exchange, the deal is termed as a "takeover" under the Companies Act.
Founded in Australia and headquartered in San Francisco, Opmantek primarily sells its software-as-as-service to managed services providers and small-businesses in North America.
According to FirstWave, Opmantek is a "fast-growing SaaS business" that generated $3.4 million of annualised recurring revenue at 100 per cent gross margin in June 2021.
It now has offices in Australia, the US and Mexico, across which it employs around 26 people.
FirstWave added that Opmantek's Network Management Information System (NMIS) solution is sold in 178 countries and has customers including Microsoft, Telmex, Claro, NextLink and NASA.
The company will also gain new channels through which to sell its own CyberCision solution, both through MSPs and direct customers.
For FirstWave, the deal brings rapid expansion into the North American market, as well as a boost in its SaaS revenue and "substantial cross-sell and up-sell opportunities".
The deal will also offer "immediate cost synergies" estimated at $2 million and a bolstered leadership team in the form of new CEO Maher and US-based Craig Nelson, who will serve as FirstWave's chief revenue officer and head of global sales.
“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," Maher said.
"I...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."
According to FirstWave chairman John Grant, the deal will be "transformational” for the cloud security provider.
The acquisition follows improvements to FirstWave's ongoing losses as it tells shareholders its operations saw little impact from the coronavirus pandemic during the last half year.
The publicly listed cloud security company saw its losses after tax fall 2.8 per cent to $6.4 million despite ongoing investment in its security platforms for the period ended 30 December 2020.
Last half year, FirstWave saw its losses after tax fall 2.8 per cent $6.4 million despite ongoing investment in its security platforms for the period ended 30 December 2020.
Firstwave claimed at the time it was able to seamlessly switch to a new working from home environment at the start of the pandemic and already relied on video conferencing, meaning overall operations remained stable during 2020's COVID-19 shutdowns.
