Opmantek Limited is a provider of enterprise-grade network management, automation and IT audit software to Managed Service Providers (MSP) and medium-to-large businesses.
FirstWave also launched an equity offering to raise up to $14m (Equity Raising) comprising:
- $7 million non-renounceable pro-rata entitlement offer (Entitlement Offer); and
- $7 million institutional placement (Placement).
Proposed acquisition of Opmantek
Opmantek provides proprietary world-class network management, automation and IT audit solutions. Opmantek is incorporated in Australia with a headquarters in San Francisco.
The Acquisition will be transformative for FirstWave Cloud Technology Limited, bringing substantial operational, financial and strategic benefits including:
Due to this acquisition, FirstWave’s product portfolio will expand to provide an end-to-end solution for network discovery, management and cybersecurity.
US Market Access
Immediate access to lucrative US market with approximately 60% of Opmantek’s Annualised Recurring Revenue coming from North America (including Canada, Mexico, and the USA).
Additional SaaS Revenue
Opmantek generated $3.4m of ARR at a 100% gross margin in June 2021.
Substantial cross-sell and up-sell opportunities and cost synergies estimated at $2m.
Strengthened Leadership Team
The acquisition also means a shake-up in leadership. Opmantek’s major shareholder and Executive Chairman, Danny Maher to become FirstWave’s Managing Director, and CEO and US-based Craig Nelson become Chief Revenue Officer and Head of Global Sales.
FirstWave’s Executive Chairman, John Grant offered additional insights saying, “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 partnership expands the growth potential of both companies by providing 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 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 also shared the following remarks.
“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 that we have an incredible opportunity to be the automated network and security management platform of choice for MSPs globally.”