Data#3 strikes acquisition deal with Discover Technology
Brisbane-based business technology services provider, Data#3, is making a run at the Wi-Fi analytics sector, after securing a multimillion deal acquire Australian Wi-Fi analytics company, Discovery Technology.
Under the terms of the deal, Data#3 will pay AU$1.5 million to acquire the initial 42.5 percent of the shares in Discover Technology, and will provide another AU$1 million in working capital to fund the ongoing development of the business.
As part of the agreement, Data#3 has an option to acquire an additional 14.2 percent on the same terms by 30 June 2015 and a further option to acquire the balance of the shares in the company at market price by 30 June 2017.
Data#3, which is listed on the Australian Securities Exchange, provides business technology solutions in a hybrid IT environment, and has been a reseller of Discovery Technology's Wi-Fi analytics platform since its launch in 2013
Discovery Technology's analytics, location, and customer communication software product, Discovery Connected Customer-xperience (CCX), is deployed over Wi-Fi networks, enabling network owners to monetise their Wi-Fi infrastructure through customer analytics and location aware monitoring, combined with delivery of numerous media and business applications.
Discovery Technology commissioned its first CCX customers in the second half of 2013 and, since then the company has continued to develop and evolve the CCX platform to provide one portal for all forms of analytics, location and communication within a Wi-Fi enabled environment.
Now, the platform is operating in shopping centres, retail premises, universities, gaming, outdoor locations and hospitality around Australia.
Data#3 plans to retain its reseller status of the CCX product, managing it separately from the investment in Discovery Technology to "ensure the integrity of Discovery's relationship with other resellers of the solution".
John Grant, Data#3 managing director, said the deal would allow the company to tap into the growing Wi-Fi analytics sector.
"This investment offers Data#3 an opportunity to be at the forefront of this exciting and growing area and aligns with two elements of our strategy — to be a leader in the cloud marketplace and a participant in the applications sector particularly where it influences our customers' downstream investment in infrastructure and managed services.
"We are delighted to have secured this stake in the rapidly growing Wi-Fi sector and to do it with a solution that's built for the cloud and capitalises on demand for consumption based investment," he said.
Discovery Technology's co-founder and shareholder, Brendan Williams, said that the new agreement would enable the company's technology to gain a broader reach in the local market.
"Over the last two years we've made significant headway in developing and taking our Wi-Fi analytics solution to market, but this is a new venture for us and having Data#3 as a strategic investor strengthens the relationship we have with Cisco and will provide us with the financial support, guidance and stewardship a typical 'start-up' technology requires to deliver the outcomes we see are possible," he said.