Montech Holdings is on the acquisition hunt for complementary, Cloud-focused technology businesses as it plans to expand its local presence and skills set.
The ASX-listed company is looking for Cloud and managed services companies that provide additional solutions capability and are cash flow positive with recurring revenue, as well as complement its technical skills and relationships.
They also need to maintain strong technology vendor partnerships.
Montech non-executive Chairman, David Shein, told ARN Montech will be looking to acquire companies that will fit culturally within its existing acquisitions as well as help expand its NSW presence and enter into Victoria.
The company is also seeking to raise $4.3 million through a Replacement Prospectus. The offer will include 114.2 million new shares at 3.5 cents per share to raise $4 million and up to 12 million employee shares at 2.5 cents per share to raise up to $300,000. It plans to re-commence trading on the ASX on May 19.
“We’ve had a fair amount of interest in what we’re doing,” Shein told ARN.
“We have a strong relationship with Microsoft and we’re interested in organisations with skill sets in Microsoft technology and specifically looking at migrating customers from on-premise into the Microsoft Azure platform.”
“In terms of any acquisition we make, we’re looking to build a long term sustainable business and we’ll be more interested in ensuring that management stays with the company. We would rather see them as people that will share the vision and want to be there for the long term.”
The company’s growth strategy also entails developing intellectual property and products to build and increase recurring revenues.
Last year, Montech embarked on its market strategy through dual acquisitions of Technology Effect and Breeze. Both are Cloud-focused software and services organisations that have complementary skills sets, culture and technology relationships.
In February, Breeze’s Nicki Page, was named as Montech CEO, while Technology Effect co-founders, Joe D’Addio was appointed as director and chief operating officer, and Scott McPherson became director of solutions.
