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FirstWave snaps up MSP software vendor Opmantek

Cybersecurity technology company FirstWave Cloud Technology has acquired MSP software vendor Opmantek.

Headquartered in the US and incorporated in Australia, Opmantek primarily sells its network management, automation and IT audit solutions to MSPs and medium-to-large businesses worldwide.

FirstWave Cloud will acquire 100% of Opmantek via an all-scrip takeover under which approximately 691 million new FirstWave shares will be issued to Opmantek’s shareholders.

FirstWave will also raise $14m (£10.4m) in equity via an entitlement offer and institutional placement, both of which are worth $7m (£5.2m) each.

According to FirstWave, the deal will be transformational for the company, enabling it to expand its product portfolio with an end-to-end solution for network discovery, management and cybersecurity.

“Rarely do you find two companies that fit together as perfectly as FirstWave and Opmantek,” said FirstWave’s executive chairman, John Grant. “In a case of the whole being greater than the sum of its parts, both companies bring highly complementary business models, product offerings and geographic footprints. The combination significantly expands the growth potential of both companies by providing truly global reach, an expanded product portfolio, and material operational, strategic and financial benefits.”

Grant added that FirstWave will also gain access to Opmantek’s channel partners and sales force in the US, Canada and Latin America.

For FirstWave, the deal will also bring immediate cost synergies estimated at $2m (£1.4m) and a strengthened leadership team, with Danny Maher, Opmantek’s executive chairman, joining FirstWave as managing director. 

Opmantek CEO Craig Nelson, based in the US, will join as chief revenue officer and head of global sales, and former Intelledox CEO Ray Kiley will also join the firm’s board. 

“The acquisition by FirstWave will enable the integration of Opmantek’s software onto FirstWave’s CyberCision Open Security Management Platform and create an end-to-end solution for network discovery, management and cybersecurity that is globally unique," Maher added. “I will be joining as FirstWave’s CEO and am excited by a belief that we have an incredible opportunity to be the automated network and security management platform of choice for MSPs globally."

FirstWave said the acquisition will add $4m (£2.9m) of additional revenue at 100% gross margin and around $3.4m (£2.5) of fast-growing ARR. The transaction is expected to be completed by January 4 next year.