ActivePort is in the final stages of raising $10m, in what the company hopes will be an oversubscribed IPO as it targets an ASX listing later this year.

ASX IPO candidate and telecommunications software provider ActivePort has received strong early support from sophisticated investors, as it gears up for a possible listing later this year.

The company owns a unique software defined networking capability that includes  SD-WAN technology and an “end to end” orchestration capability that has attracted a lot of interest from national and international clients, due  to its high quality, flexibility and competitive pricing.

ActivePort’s SD-WAN software can run on any network and interface with any provider that operates the software layer.

The core of its business, the company says, is  to make it easy to use network, cloud and other technologies to connect across a city, country or globally in a matter of seconds.

“If there’s one thing that ActivePort is about, it’s making connectivity really simple and really fast, and putting control back in our customers hands” says CEO of ActivePort, Karim Nejaim, who spoke exclusively with Stockhead.

 

Strategic partnership with Console Connect by PCCW Global

ActivePort recently announced a partnership agreement with Console Connect, the on-demand SD interconnection platform owned by leading communication service provider PCCW Global.

The company is collaborating with Console Connect by PCCW Global to extend the availability of its SD-WAN 2.0 solution to more businesses worldwide using the power of Software Defined Interconnection®.

Through Console Connect’s NNI solution, ActivePort has real-time access to an on-demand global network, enabling more of its enterprise and carrier customers to connect, configure and activate their edge connectivity.

“Our goal is to put control back in the hands of our customers, make it simple and challenge the norms of how technology is designed to work. Our SD-WAN does exactly that, and we are proud to collaborate with Console Connect to roll this out globally,” Nejaim said.

PCCW’s Console Connect platform is accessible from 400+ data centres in 50+ countries worldwide, and is integrated with all major hyperscale cloud providers including AWS, Google Cloud, Microsoft Azure, IBM Cloud, Oracle Cloud, Anexia and more.

“They’re a very important partner for us. This deal will give ActivePort an additional enormous network for our enterprise, telco, and ISP/MSP customers.”

ActivePort has also made inroads into countries like Brazil, Indonesia, Thailand and Kenya that have a strong desire for an evolution technology but are captive to high costs.

“These are countries where there is a desire for networking capability with things like SD-WAN, but are unable to invest in the big end of town vendors,” Nejaim said.

 

Growth through acquisitions

The company plans to ramp up and expand the business into the future through M&A, with a mission to positively disrupt the global market.

In Australia, it has recently made two acquisitions – one being a service provider in Perth called Vizstone, which has existing clients within the oil and mining industry.

“It’s an important channel for us to get into the mining and off-shore resources industry,” Nejaim told Stockhead.

On the east coast, ActivePort is in the final stages of a deal with a company called Starboard, which is involved within the technology and finance industries.

Nejaim says he’s also looking at partnerships and in time, potential acquisitions in Brazil, Malaysia, and potentially North America.

The underlying message here is clear – ActivePort sees the partner and acquisition model as the quickest path to growth.

“It’s easier for us to grow by partnering and then looking to acquiring companies that are already effective, functioning business than having to set up offices one by one,” Nejaim said.

“Over the next two years we will look toward partnerships and potential acquisitions strategically chosen around the main areas of growth, including Southeast Asia, South and North America, Africa and into the Middle East.”

But Nejaim emphasised that ActivePort won’t be making acquisitions just to increase in size, but rather to increase its revenue base.

“The heart of ActivePort is the software itself. So partnerships and potential future acquisitions are purely to facilitate the growth in our software licensing globally.”

Nejaim also says that any future acquisitions  are likely to be made via a mix of capital and share swap agreements

 

IPO and valuation

Ahead of its ASX listing, ActivePort flagged a pre-IPO raise of $10 million to $15 millionm and it has already raised $10 million of that target, through lead manager Bridge Street Capital.

Funds raised will mainly be used to grow its sales capability, both nationally and internationally.

The company plans to hire up to 30 people globally within the sales, marketing, and systems departments.

Nejaim says that it’s the right time to invest into ActivePort, as it has a high margin software product that can scale quickly.

Asked which ASX stock would be the most comparable to ActivePort, Nejaim said it would be difficult since ActivePort does so much more in terms of automated orchestration compared to others.

But he suggested that Dubber Corp (ASX:DUB) may provide the best comparison, as the company is also into traditional services and software. Dubber’s share price has risen by 650% over the past five years.

“ActivePort has also completed modelling analysis which suggests we have fantastic revenue trajectories over the next one to three years,” Nejaim said.

“It’s going to be a very exciting ride, and if we’re successful in disrupting those markets,  customers will come out as the big winners.”

This article was developed in collaboration with ActivePort, a Stockhead advertiser at the time of publishing.

 This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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