The transaction is the 9th acquisition of cloud and networking assets that Zettagrid has completed since commencing business in 2010, helping the business to achieve significant growth in the APAC region.
Adisyn will receive cash consideration of up to $1.4 million (before costs and adjustments), which is payable in 2 tranches. The first tranche of $850,000 was paid today, 1 May 2024. The second tranche of $550,000 will be payable 9 months from today and is subject to various adjustments determined by the annualised revenue of the VMware customers at the completion date. Further financial details are available in the official ASX announcement.
DC Two (www.dctwo.com.au) has a unique cloud footprint in the Northern Territory capital of Darwin which will be upgraded and transformed to become Zettagrid’s sixth Australian availability zone.
Zettagrid and DC Two use similar technologies including VMware, Microsoft, Veeam and Wasabi which will simplify the migration of customer services to the Zettagrid platform. At the conclusion of the migration, DC Two customers will have access to Zettagrid’s self-service cloud portal and automation.
Zettagrid’s CEO, Nathan Harman, stated: “I'm very pleased to be able to announce the acquisition of Adisyn’s VMware cloud infrastructure. Adisyn customers will be able to experience the benefits of the scale and cloud automation that Zettagrid provides, and the transaction provides us with a new cloud availability zone in Darwin. This will expand our sovereign Australian cloud availability zones to six, which encompasses Sydney, Melbourne, Brisbane, Perth, Adelaide and now Darwin. We're excited to enter into a strategic partnership with Adisyn, which will allow them to focus on their Managed IT and Cybersecurity services whilst being able to leverage Zettagrid cloud infrastructure.”
Adisyn’s Managing Director, Blake Burton stated: “I’m excited for Adisyn to be partnering with Zettagrid, who are one of the few premier providers of VMware sovereign cloud services in Australia. This sale and partnership allows us to focus our attention on building service-based solutions for defence-linked SME businesses, while still being able to utilise the cloud infrastructure scale which Zettagrid has built over a number of years. Zettagrid are a national cloud provider in Australia, allowing Adisyn to provide local cloud services in almost every state as part of our sovereign IT offering”.
Refer to the Adisyn Ltd ASX Market Announcement