Digital experience monitoring (DEM) solutions provider Martello Technologies deployed in more than 5,000 enterprise networks around the world. The company announced that it has completed the acquisition of GSX Participations SA (“GSX”), a provider of end-user experience monitoring for Microsoft Office 365.
Martello has acquired 100% of the shares of GSX
Martello has acquired 100% of the shares of GSX, which is headquartered in Geneva, Switzerland with more than 400 enterprise customers globally. The consideration for the acquisition was 22,000,000 common shares and CDN$13,860,000 cash for an aggregate purchase price of $18,370,000. The acquisition of GSX, recognized by Gartner as a digital experience monitoring vendor, extends Martello’s DEM capabilities into the Microsoft Office 365 market, which has approximately 200 million monthly active users.
Based on unaudited financial statements prepared by GSX for the year ended December 31, 2019, GSX generated FY2019 revenues of €4.4M (approximately CDN$6.6M), 89% of which were recurring, while billings from sales of Microsoft Office 365 digital experience monitoring increased by 34% in FY2019. Martello has closed debt financing concurrent with the closing of the Transaction.
Credit agreement with National Bank of Canada
Martello has also entered into a credit agreement with National Bank of Canada for a $7.5MM secured revolving facility, which the Company expects will close by June 1. Additional information about the transaction and the debt financings above are detailed in the press release dated April 28, 2020. In addition, on May 26, 2020, Martello closed a $6.9 million bought deal public offering led by PI Financial Corp. and Eight Capital as co-lead underwriters and Paradigm Capital Inc. on behalf of a syndicate of underwriters. John Proctor, President and CEO of Martello said,
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“GSX brings a technology and business that is accretive to Martello’s objectives of increasing monthly recurring revenue and investing in digital experience monitoring solutions. As global businesses shift to a remote work model, the performance of cloud digital services like Microsoft Office 365 has become even more critical. I appreciate the vision of our lenders, who have recognized this significant opportunity and provided financing despite uncertain market conditions. As we begin the integration process, I’m pleased to welcome the GSX team to the Martello family”.