Martello NEWS

By Mark Haranas on April 16, 2018

The software-de­fined data center is the next evolution for infrastructure and automation with promises of lower costs, greater agility and increased scalability.

Rather than a hardware-centric approach to server, storage and networking, market leaders are turning to software and cloud-like consumption models to meet today’s demands. Bene­fits to implementing a software-de­fined strategy include simpli­fied management under a single platform, reducing the need for specialized components, and the automation of resource provisioning and management. With the rise of the software-defined data center, Dell Technologies CEO Michael Dell told CRN recently that on-premises solutions are becoming more cost-effective compared with the public cloud.

#18 Elfiq Networks
John Proctor, President and CEO, Martello Technologies
Headquarters: Montreal, Quebec

Elfiq Networks, a subsidiary of Martello Technologies, connects edge hardware or virtual devices to central data centers or the cloud to form SD-WAN. The company recently released Atlas, Elfiq’s first subscription-based SD-WAN as a service suite. Elfiq merged with communications management provider Martello Technologies in January.

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Globe and MailApril 12, 2018

Ottawa’s Martello Technologies Inc., which provides a growing suite of tools to make businesses’ communications networks more effective, is trying to go public through the reverse takeover of an inactive shell company on the TSX Venture Exchange’s NEX board.

The company announced on Thursday that Vancouver-based Newcastle Energy Corp. had agreed to a reverse takeover, and that it hoped as well to raise between $4-million and $6-million in a private placement with its shares valued at $0.48. The NEX houses companies that have dropped below the TSX-V’s listing standards, giving firms the chance to accept reverse-takeover offers as a path to return to the venture exchange.

Joining the TSX-V is Martello’s plan. The strategy, chief executive John Proctor said in an interview, will help the company avoid the significant costs of an initial public offering while granting it access to a greater pool of capital to continue its acquisition-focused growth plans.

 The company is projecting to take in $9-million in revenue this fiscal year. “If I look at the journey we’re on, $10-million to $100-million, we’re going to grow by organic sales naturally but also by acquisition − and having a more robust mechanism for that acquisition process is going to be key,” Mr. Proctor said.

Martello monitors and troubleshoots businesses’ communications networks with a specific focus on voice over internet protocol, or VoIP, digital phone technology. It identifies the issues affecting these networks, with a particular expertise with Mitel Networks Corp. products.

 In January, it announced a merger with Montreal’s Elfiq Networks, making it a subsidiary of Martello and expanding its suite of tools in a bid to go from identifying network problems to solving them and preventing future issues.

The company was founded in 2009 by former Nortel Networks Corp. vice-president Niall Gallagher and Emilio DiLorenzo, a past associate chief information officer with the Rochester Institute of Technology. It is co-chaired by entrepreneurs Terry Matthews and Bruce Linton. And it was initially backed by Mr. Matthews’ investment firm, Wesley Clover International, and raised $3-million in 2014 and an additional smaller round several months ago.

Scott Gardner, managing director of Torrent Capital, which participated in the recent raise, told The Globe and Mail that after watching Martello fine-tune its suite of tools, its potential for aggressive expansion was an attractive investment.

“The key to many software companies is, ‘If we build it, they will come,’ “ Mr. Gardner said. “But that approach is fraught with risk. Because Martello has existing relationships, they’re able to ask customers what the deficiencies are in their communications networks. Then they can either address that internally, or buy companies to help solve those problems. And by going public, they’re able to access the capital to make those acquisitions.”

Newcastle Energy, technically a junior oil and gas company based in Vancouver, is inactive. Reached by phone, CEO Allen Wilson said: “We’re pleased and excited about the transaction.” Both he and Mr. Proctor said the companies’ shareholders had a mutual connection that helped facilitate an introduction, but would not name them. Mr. Proctor also said Martello’s co-chair and former CEO, Mr. Linton – also a co-founder and CEO of Canopy Growth Corp. – helped broker the connection.

 Mr. Proctor, former vice-president of global cybersecurity of CGI Group Inc., said he hoped the small company’s TSX venture-listing plan would encourage peers to do the same. “That sets a stage for companies of our size to do similar things,” he said. “To get into that public market, to raise capital and grow – which can not only help the Canadian economy and Canadian companies, but the technology marketplace in Canada.”

OBJ LogoApril 12, 2018

CEO John Proctor says the public listing, alongside a multimillion-dollar private placement round, will fuel an “aggressive growth strategy” for the firm.

Martello Technologies will soon conduct a reverse takeover of a publicly listed shell company to secure a listing on the TSX Venture Exchange, the Ottawa-based firm announced Thursday morning.

The cloud-based communications services provider, which first signaled its intent to go public on an episode of Techopia Live last September, has entered into an agreement with Vancouver’s Newcastle Energy Corporation (TSX-V:NGY-H) to complete a reverse takeover transaction, subject to regulatory approval.

The move to public markets is meant to fuel an “aggressive growth strategy,” chief executive John Proctor said in a statement. He told Techopia Live in January that it was time to scale up the firm’s solution, which he says is an “enabler” for clients’ digital transformation.

In connection to the public listing, Martello will raise a private placement round with proceeds between $4 million and $6 million.

Wesley Clover chairman and Martello co-chair Terry Matthews believes the firm will be well-served by a public listing. Wesley Clover is an existing investor in Martello, which has a focus on serving fellow portfolio member Mitel’s clients.

“Access to public capital is an excellent growth vehicle for companies such as Martello,” Matthews said in a statement. “This step towards a public listing exposes Martello to global investors who are attracted to the thriving Canadian technology sector.”

One of Techopia’s tech firms to watch this year, Martello began 2018 with a merger, acquiring Montreal-based Elfiq Networks and nearly doubling the company’s size. Proctor suggested then that Martello would likely grow its headcount by another 50 per cent this year.

Last month, the firm unveiled a rebranding effort in preparation for its public listening.

Martello also led Ottawa firms last year on the annual PROFIT 500, ranking No. 48 on the list of the country’s fastest-growing firms.

Martello anticipates the public listing will take place before the end of 2018, but could not offer more specifics at the time of publication.