Extends network and IT performance management capabilities
and expands sales presence in key European markets.
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OTTAWA, Oct. 15, 2018 /CNW/ - Martello Technologies
Group Inc. ("Martello" or "the Company") (TSXV: MTLO), a leading
provider of network performance management solutions for real-time
communications, announced today that it has signed a share purchase
agreement to acquire Savision B.V. ("Savision"), subject to final
approval of the transaction by the TSX Venture Exchange ("TSXV")
and the completion of the standard conditions to closing for this
type of transaction. More than 5,000 businesses and government
organizations are already under management with Martello's
solutions, in 150 countries around the world. Savision was founded
in 2006 and provides enterprise software for the visualization of
IT systems management data such as performance metrics, outage
information and incidents. Deployed in over 50 countries around the
world, Savision's software is an ITOps solution that integrates and
controls monitoring, cloud, and service management tools data in a
single pane of glass.
Under the terms of the share purchase agreement, Martello will
purchase, through its wholly owned subsidiary, Martello
Technologies Corporation, all issued and outstanding shares of
Savision for an aggregate purchase price of $11,966,504, subject to adjustment, payable as
follows: (i) a cash payment of $3,734,504 and (ii) the issuance of 18,709,090
shares in the Company's share capital to the shareholders of
Savision at a price of $.44 per
share. A finder's fee of $358,625 is
payable to Sampford Advisors, who acted as exclusive M&A
adviser to Martello on this transaction.
Transaction Highlights:
Martello's Recurring Revenue is Accelerated
Savision's recurring subscription-based software has more than
900 customers, with 2017 revenues of over $4.5 million (CDN). Prior to this transaction,
approximately 60% of Martello's total revenues were from
subscription-based sales of software products, and this will be
accelerated with the acquisition of Savision. More than 50 new
partners will be added to Martello's channel sales program.
Headquartered in Amsterdam,
Savision has 32 employees.
Savision CEO Stefanie Richheimer Joins Martello as Chief
Revenue Officer
Stefanie Richheimer, CEO of
Savision, will join Martello as Chief Revenue Officer, effective
upon final TSXV approval of the transaction. Ms. Richheimer is a
seasoned industry expert in Software, IT & Retail. She was the
Managing Director for a market-leading consumer retail chain with
35 outlets before successfully leading her own start-up to become
one of the key IT firms in The Benelux. Following that, Ms.
Richheimer was an integral part of the Federal government's Direct
Foreign Investment team for the City of
Amsterdam. She is also co-founder of AmsterdamPark Capital,
an early-stage technology investor.
Martello's Sales Team will Double in Size with an Expanded
Global Presence
Led by Chief Revenue Officer Stefanie
Richheimer, the size of Martello's sales and marketing team
will double with this acquisition, accelerating the ability to
cross-sell the Company's suite of network and IT performance
management capabilities to its growing base of channel partners and
MSPs. The Company will have sales personnel in Canada, the US and Europe.
The Company will Pursue Joint Opportunities in Network and
IT Performance Management
Martello will team its suite of network and IT performance
management capabilities, developed over more than 8 years, to
address joint opportunities to solve its customers' problems.
"I'm delighted to welcome Stefanie and the entire Savision team
to the Martello family", said John
Proctor, President and CEO of Martello. "We expect this
acquisition to be accretive to Martello, as we expand our network
and IT performance management capabilities and leverage a talented,
globally distributed team with a track record of success".
"Together, we will build a global network and IT
performance management leader", said Stefanie Richheimer, CEO of Savision. "Our
expanded global sales force will cross-sell a solid portfolio of
network and IT performance management products. I look forward to
working with John and the Martello team to drive sales of this
growing suite of solutions".
Martello has a positive track record in merger and acquisition
activity, having acquired Netvitesse in 2014, and Elfiq Networks in
December 2017. The Company's
solutions have been recognized by the industry. In September,
Martello received a Frost & Sullivan Leadership Award for NPM
(Network Performance Management) and ranked as Ottawa's Fastest Growing Company, at No. 28 on
the Growth 500 list of Canada's
Fastest Growing Companies. The Company recently went public with a
TSXV listing, following the closure of an oversubscribed
$7.5 million private placement.
About Martello
Martello's solutions manage and
optimize the performance of real-time services on cloud and
enterprise networks. Our solutions, which include network
performance management software and SD-WAN technology, allow over
the top (OTT) service providers and enterprises around the world to
deliver better service quality and a reliable user experience.
Designed for real-time communications such as voice and video,
Martello's solutions detect, identify and address network
performance problems BEFORE service quality is impacted. For
information, visit: http://www.martellotech.com
About Savision
Savision is a Microsoft Gold Partner
founded in 2006 that provides enterprise software for the
visualization of IT systems management data such as performance
metrics, outage information and incidents. Deployed in over 50
countries around the world with more than 900 customers, Savision's
software is an ITOps solution that integrates and controls
monitoring, cloud, and service management tools data in a single
pane of glass. Savision's products help IT teams reduce alert noise
and control their IT environment. For more information, visit:
http://www.savision.com
FORWARD LOOKING STATEMENTS: This press release contains
forward-looking statements that address future events and
conditions, which are subject to various risks and
uncertainties. Actual results could differ materially from those
anticipated in such forward-looking statements as a result of
numerous factors, some of which may be beyond the Corporation's
control. These factors include: general market and industry
conditions, risks related to continuous operations and to
commercialization of new technologies and other risks disclosed in
the Corporation's filings with Canadian Securities Regulators.
Forward-looking statements are based on the expectations and
opinions of the Corporation's management on the date the statements
are made. The assumptions used in the preparation of such
statements, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements. The Corporation
expressly disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
applicable law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Martello Technologies Group