Newly listed Australian software company ActivePort plans to expand operations and has a series of mergers and acquisitions lined up in the US, Hong Kong, India, Brazil and Malaysia.
ActivePort is a software company that allows customers to manage all their networking technology from a single screen.
The organisation, which focuses on software-defined network technology known as SD-WAN, told Capital.com that it is working on a major expansion plan.
"We are working with potential partners in Brazil, Malaysia, Singapore, Hong Kong, Nigeria, the USA and New Zealand to help us with global expansion,” CEO Karim Nejaim told Capital.com.
“Some of these partners are likely to form part of an acquisition strategy over the next six to 18 months.”
Acquisitions and mergers
Over the next two to three years ActivePort has a flurry of projects planned and expects to make some highly profitable acquisitions later in the financial year across markets in Western and Eastern Europe, Asia, Oceania, North America, South America, the Middle East and Africa.
The group already has strong partnerships in place with UK telecoms company PCCW Global and Australian cloud services provider Radian Arc, which are both active globally helping them to sell and deliver its software.
ActivePort has said it plans to use the funds it raises through the IPO process to fuel its international growth strategy.
“We have a software product that is in high demand and now we can focus on extending our sales and support reach into eight regions around the world. Approximately half the funds are allocated to setting ourselves up internationally,” Nejim added.
Despite its positive global expansion plan, ActivePort, which has a market cap of AUD44.55m and made its stockmarket debut on the ASX last month under the stock ticker ATV, suffered a slight setback with its lacklustre debut.
The stock price hit a daily high of AUD20.5 on 20 October but the next day it dropped by 4.60% and has since failed to reach its debut high.
However, the company has no regrets and believes it was the right time to float.
“When you couple the international growth strategy for ActivePort, particularly focusing on telco/carriers and the demand internationally and locally, it is the perfect time to take the company public as part of a strategy to support growth globally,” Nejaim added.
It’s this international demand that has fuelled ActivePort’s determination and it is gearing up for market expansion to take advantage of industry opportunities.
“The SD-WAN market is projected to grow at up to 70% CAGR by 2026 and cloud and related systems at between 20% and 50% CAGR [compound annual growth rate] over the same time period,” said Nejaim.
“ActivePort is well placed in that ‘nexus’ of growth in both software-defined networks, cloud integration and automation globally for the next five years.”
ActivePort told Capital.com that it is taking its first steps into delivering software to Africa and India, where demand is high and the payback is lucrative.
The software company said it is also monitoring the interest and uptake of its products in areas such as the Middle East, which also presents huge opportunities.
“We have a strong pipeline of sales opportunities, five new customers signed up in September and we have eight contracts awaiting signature,” added Nejaim.
We also have a pipeline of international telecommunications companies and carriers that we are working with and have started the rollout of our software in several countries.”
ActivePort added that it expects to show strong growth in its quarter-two results. The group’s stock price closed 2.86% higher on Friday at AUD18.00.