As if almost scripted, another cloud computing company has raised millions of dollars and subsequently gone public (again) on the Australian Securities Exchange (ASX). Based out of Perth, Australia, Montech Holdings announced that it has raised $4.3 million while acquiring Technology Effect and Breeze. Technology Effect delivers customer focused IT solutions while Breeze offers application development and cloud integration products and solutions.
We recently wrote about the explosive growth in the cloud niche and how it somewhat resembles the dot com bubble. Every cloud based service or company seems to be cashing in on the trend, however Montech is not your average cloud service provider. As their name suggests, they are a ‘holding’ company looking to develop, build and acquire cloud based businesses. Whereas companies like Coupa Software raise VC money for the sole purpose of being able to operate, Montech raised this round of funding in order to relist on the ASX. A few months ago, the company underwent a voluntary suspension of its trading on the ASX due to compliance issues with chapters one and two of the ASX listing rules. Due to the ongoing acquisitions of Technology Effect and Breeze, the relisting was delayed. Now that funding is complete, Montech has been fully reinstated on the ASX.
According to Montech chairman David Shein, the two acquired companies have been working together for quite some time. Shein noted, “We were always confident that we would raise the capital and the integration of the management teams has gone unbelievably well. It’s business as usual.”
The acquisition of these two companies is important for Montech. As we mentioned above, Montech is not your average cloud based service provider. They look to develop and/or build cloud companies. By acquiring separate niche businesses within the cloud industry, Montech is positioning itself to dominate in Australia. While acquisitions are important in order to achieve national domination, Mr. Shein did say they would focus on organic growth as well. He went on to say, “That [organic] growth will be complemented by making strategic targeted acquisitions that enable an integrated business model capable of delivering services and solutions on a state by state basis to clients.”