FirstWave Cloud Technology has acquired US-based network automation software vendor Saisei Networks, expanding its existing reach in the country.
The price of the deal consists of 40,571,428 shares issued to Saisei, as well as $200,000 in cash receivables to be received by FirstWave.
Through the deal, FirstWave will gain approximately $1 million in annual revenue, a range of product and marketing solutions to its existing network management information system platform and the majority of Saisei’s workforce.
Specifically, all engineering and sales resources will move to FirstWave including six developers/support engineers, Saisei CTO John Harper, one salesperson and one presalesperson.
Meanwhile, not making the transition is its CEO, Julia Sartini, and its current board, as FirstWave CEO Danny Maher said there is no new board members for the global software company.
In time, Saisei will rebrand under the FirstWave branding.
Maher added that Saisei is a “highly scalable digital software business with considerable growth opportunities”.
“Having developed a proven, stable and scalable software solution, with a broad base of commercial customers, the business is well-positioned to add to our growth,” he said.
“Saisei’s leading software, provides network managers with the ability to dynamically apply network controls based on pre-configured rule sets together with machine learning delivering a highly automated solution that increases capability while reducing operational expenditure.
“The company already has over 50 customers worldwide with strong channel partner relationships that we will be able to leverage to grow our ARR [annual recurring revenue].”
In late August, FirstWave reported a 34 per cent improvement in revenue while continuing to narrow its operating losses for the year to 30 June.
The company’s operating loss, excluding impairment was $5.86 million, which is 57 per cent lower than the $13.46 million reported in the previous year.
In terms of international expansion, FirstWave shored up its Latin American presence with a Mexican hire back in May in the form of Hector Vadillo.