Special Report: The deal offers Netlinkz strong distribution access to the huge Indian market, via US partner Natsoft Inc.

Tech company Netlinkz (ASX:NET) has expanded its distribution network across the Asia Pacific, with a new deal targeting the high-growth Indian market.

In an important deal announced this morning, Netlinkz confirmed it has signed a Master Services Agreement (MSA) with US corporation Natsoft Corp.

The MSA will allow Netlinkz to leverage Natsoft’s operating base in Hyderabad, India to develop the IoT Lab and Sales HQ for India market. Natsoft employs around 700 staff globally, and has a blue-chip customer base which includes multinational clients such as Equinox, Twitch, Sun Power and IBM.

 

Capital-light market growth

Netlinkz CEO James Tsiolis said the deal offers a great opportunity to access high-growth markets in India, without a large up-front capital investment.

He added that Netlinkz is now in a position to get first-move advantage in India for distribution of its Virtual Secure Network (VSN).

Researched and designed by Netlinkz, the VSN is a proprietary device which allows customers to manage their cloud computing requirements remotely, without connecting to a central server.

“India is a logical starting point given our established presence and deep customer relationships there, and the market opportunity is primed as many industries migrate to the cloud,” Natsoft director Shyam Mamidi said.

Natsoft will also work with Netlinkz to establish Internet of Things (IoT) development labs in India and Singapore.

The news labs will be “instrumental in underpinning the success of the partnership, given we will develop local software source codes for each new market”, Mamidi said.

 

Deal structure

Along with the establishment of IoT development labs, Natsoft will act as a reseller of the Netlinkz VSN into key markets in India where it already has an established presence.

The MSA will run for a period of 24 months and can be extended thereafter by mutual agreement.

The two parties will agree to commercial terms for work carried out by Natsoft, with regard to both the reseller arrangement and IoT development work.

Development of the IOT labs at Natsoft’s offices in Singapore and India will commence before the end of this month.

In addition, “a number of new customer opportunities in India have already been identified”, Netlinkz said.

“While we continue to experience very high demand for our VSN technology in our existing markets, India represents a huge opportunity that we can quickly tap into without a huge upfront investment,” Tsiolis said.

“We know the Natsoft team well and there are some promising near-term customer opportunities that we will aggressively pursue.”

This article was developed in collaboration with Netlinkz, 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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