Martello acquires European firm, prepares to divest money-losing business line
Martello (TSX-V:MTLO), which makes products that help customers detect and troubleshoot problems in their high-speed communications networks, said this week it’s agreed to acquire Geneva-based GSX Participations in a cash-and-share deal worth $18.7 million. The transaction, which will see Martello pay $13.86 million in cash and hand over 22 million shares to GSX shareholders, is expected to close at the end of next month.
Martello has seen significant growth in monthly recurring revenues over the past several years from its subscription-based software that helps Mitel customers manage their communications networks. GSX provides similar services to users of Microsoft’s 365 suite of products such as Outlook, SharePoint and Microsoft Teams and currently has more than 400 customers around the world.