Seeking to expand their presence in the North American telecommunications market, network software company FirstWave Cloud Technology (ASX: FCT) has acquired Saisei Networks Inc., a prominent network automation software company headquartered in Silicon Valley.
The strategic acquisition will see FirstWave acquire 100% of Saisei’s assets in a move that will advance its network management capabilities and expand its global presence.
Upon settlement, FirstWave will onboard over 50 new clients via Saisei which broadens FirstWave’s customer portfolio and strengthens its foothold in a key target market.
FirstWave CEO Danny Maher commented, “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.”
Total consideration for the acquisition will see FirstWave issuing 40,571,428 new shares to Saisei as payment for the assets, along with $200,000 in cash receivables.
At FCT’s last close price of $0.055, those shares are valued at $2.23 million.
This move is expected to increase FirstWave’s annual revenue by approximately $1 million. Importantly, Saisei derives approximately 75% of its revenue from North America and Latin America, aligning with FirstWave’s growth strategy in these regions.
Six new software engineers will join FirstWave from Saisei, focusing exclusively on enhancing the company’s intellectual property to drive product development and innovation.
Saisei Networks, founded in Silicon Valley, is a leading provider of software for real-time network visibility, analytics, and control. Their patented technology empowers network managers to optimise end users’ experiences without requiring additional capital expenditure. Saisei’s carrier-grade solution is particularly relevant to telecommunications and enterprise customers, aligning seamlessly with FirstWave’s core focus.
One of the immediate plans will be to integrate Seisei products into FirstWave’s existing product suite.
FirstWave’s Network Management Information System (NMIS) and CyberCisionTM platform, combined with Saisei’s products, will enable the company to provide a comprehensive end-to-end solution for network discovery, management, and cybersecurity to its global telco and service provider partners.
For the Full Year ended 30 June 2023, FirstWave reported $12.5 million revenue which represented a 33.6% increase on the previous year.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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