Tomizone co-founder agrees to leave amid post-acquisition restructure
- 13 October, 2017 05:00
Tomizone (ASX:TOM) co-founder and chief commercial officer (CCO), Phillip Joe, has agreed to be made redundant as part of a restructure process stemming from its recent acquisitions of Ironman and BlueSky.
At the same time, the Australian Securities Exchange (ASX)-listed Wi-Fi software company's head of APAC sales, Saurabh Madan, has resigned.
Joe will be leaving his role on 13 December from the company he co-founded. He was appointed CCO in May 2015 and maintains more than 29 years of experience in consulting, venture investments and investment management, as well as starting up organisations.
Tomizone told shareholders on 12 October that Joe also intends to step down from the company's board before his redundancy kicks in.
"Joe will remain available to the group for specific projects, if required,” Tomizone said in a statement lodged with the ASX. “The board acknowledges and thanks Joe for his long standing contribution to Tomizone as a co-founder and executive director.”
As part of the management shake up, Ironman CEO, Dean Cates has been appointed as Tomizone’s New Zealand group CEO, which includes Tomizone New Zealand, along with its BlueSky and Ironman businesses, both based in NZ.
A new independent director will also be appointed in the future, the company said.
Cates claims extensive experience in general management with a background in rental, banking, security and IT businesses, and will be on the lookout for more acquisition targets in the NZ market.
Tomizone chairman, Ian Bailey, said there would be some costs incurred that will impact its half year result, but ultimately the business is moving towards a positive EBITDA position in the short term.
The company said it identified synergy savings of up to $600,000 in infrastructure, staff and operations.
“Additionally, the senior management team are focused on closely managing the cost structures of the business, and expect that synergy savings from the recent acquisitions, plus additional new products, will start flowing through to produce a positive EBITDA in the first half 2018,” Bailey said.
“To conserve cash, the senior management team have agreed to be employed on the basis of a lower cash component then they could obtain in the market and it is anticipated that the company will look to obtain shareholder approval at the upcoming AGM [annual general meeting] to put in place shares and options as incentives that align and reward key staff and directors for increasing shareholder value.”
Tomizone will also be announcing new initiatives down the track which will include additional revenue streams available from users of the Tomizone WiFi networks, combined with recurring revenues from the recent acquisitions, and new Tomizone products such as VoIP and IT managed services.
Tomizone revealed its plans to purchase Bluesky Online in early September. Bluesky Online is an NZ-based managed services provider, and was bought for a combination of cash and shares, made up of NZ$142,500 in cash and 6.67 million Tomizone shares.
The acquisition of Ironman, an NZ company that provides a combination of hardware, software and Wi-Fi services, was announced later the same month.
Tomizone revealed on 9 October that both acquisitions had been completed.