Cloud software distributor Rhipe has raised almost A$34 million in investor capital in order to pursue further acquisitions.
The Australian firm announced the raise as part of growth plans for its cloud software subscription business.
The fundraising effort comes off the back of significant growth in Rhipe’s public cloud software and infrastructure business, driven by demand for Microsoft Azure and Office 365.
This saw Rhipe gain 33 per cent in sales growth to A$152.7 million in the first half of this financial year.
The capital raise comes in the form of A$33.6 million unconditional placement of ordinary shares to institutional investors and A$200,000 to directors and employees. It is subject to shareholder approval which will be decided at a general meeting on 9 June.
As a result of the raising and the COVID-19 pandemic, publicly listed Rhipe said it would also adjust current long term incentive targets to keep the leadership team “motivated” on long term success.
Rhipe dipped its toes in the acquisition waters last August when it bought Melbourne-based software company Network2Share for A$5 million.