Martello NEWS

November 2, 2018

David Sali

Cheikh was joined on stage by two other noteworthy members of the city’s tech community – Erin Crowe, the chief financial officer at Kanata-based Martello Technologies, and venture capitalist and serial entrepreneur Mike Weider.

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The panellists also cited Ottawa’s maturing investment scene as a driver of tech growth, noting the emergence of locally based VCs such as Mistral Venture Partners and the rising number of firms from Boston, New York and Toronto that are setting their sights on enterprises in the capital.

“We always need more (venture capital), but it is a lot better than it was 20 years ago when I started,” Weider said.

Crowe agreed, saying Martello wouldn’t be where it is today without the early financial backing it received from Terry Matthews and his Wesley Clover investment firm.

“You need people like that to keep developing the city,” she said.

Financing from leading Canadian commercial lender closed in conjunction with the acquisition of Savision.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.

Ottawa, Ontario (November 2, 2018) – Martello Technologies Group Inc. (TSXV: MTLO), (“Martello” or the “Company”), a leading provider of network performance management solutions for real-time communications announced today that it has closed a financing with Royal Bank of Canada (RBC) for new loan facilities through its subsidiary Martello Technologies Corporation (the “Loan”). The financing includes a term loan of $3 million, in conjunction with the acquisition of Savision B.V.

This new financing is comprised of a term loan, a revolving facility and other ancillary facilities. The term loan of $3 million bears an interest rate of 5.40% per annum and is repayable over a term of 36 months. The revolving facility, in the amount of up to $1 million, bears a variable interest rate based on the RBC prime rate and is repayable on demand.

The facilities are secured by a general security agreement on the property of Martello Technologies Corporation, a subsidiary of the Company, as well as secured guarantees from five other subsidiaries of the Company and the Company itself.

“This loan facility from Royal Bank of Canada will solidify our foundation for growth and help fuel Martello’s ‘build and buy’ strategy, which includes the acquisition of Savision”, said John Proctor, president and CEO of Martello. “We appreciate the confidence placed in us by one of Canada’s largest commercial lending institutions”.

Recent acquisition activities for Martello include the acquisition of Savision B.V. in October 2018, after having acquired Elfiq Networks in December 2017 and Netvitesse in 2014. The Company’s solutions have also been recognized by the industry.  In September, Martello received a Frost & Sullivan Leadership Award for NPM (Network Performance Management) and ranked as Ottawa’s Fastest Growing Company, at No. 28 on the Growth 500 list of Canada’s Fastest Growing Companies. The Company recently went public with a TSXV listing, following the closure of an oversubscribed $7.5 million private placement.

About Martello Technologies Group

Martello Technologies Group Inc. (TSXV: MTLO) delivers confidence in network performance. Our solutions manage and optimize the performance of real-time services on cloud and enterprise networks and include network performance management software and SD-WAN technology. Over the top (OTT) service providers and enterprises around the world rely on Martello’s technology to deliver better service quality and a reliable user experience. Designed for real-time communications such as voice and video, Martello’s solutions detect, identify and address network performance problems BEFORE service quality is impacted. Martello Technologies Group is a public company headquartered in Ottawa, Canada with offices in Montreal, Canada and Paris, France. Learn more at http://www.martellotech.com

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FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements that address future events and conditions, which are subject to various risks and uncertainties. Actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Corporation’s control. These factors include: general market and industry conditions, risks related to continuous operations and to commercialization of new technologies and other risks disclosed in the Corporation’s filings with Canadian Securities Regulators.

Forward-looking statements are based on the expectations and opinions of the Corporation’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Corporation expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Transaction extends network and IT performance management capabilities and expands sales presence in key European markets.

 NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.

Ottawa (Canada), November 1, 2018 – Martello Technologies Group Inc. (“Martello” or “the Company”) (TSXV: MTLO), a leading provider of network performance management solutions for real-time communications, announced today that it has received final approval from the TSX Venture Exchange (“TSXV”) for its share purchase agreement to acquire Savision B.V. (“Savision”), previously announced on October 15, 2018. By acquiring Savision, Martello extends its already strong customer base and network performance management capabilities, while expanding its sales presence in Europe. Savision was founded in 2006 and provides enterprise software for the visualization of IT systems management data such as performance metrics, outage information and incidents. Deployed in over 50 countries around the world for more than 900 customers, Savision’s software is an ITOps solution that integrates and controls monitoring, cloud, and service management tools data in a single pane of glass.

Under the terms of the share purchase agreement, Martello has purchased, through its wholly owned subsidiary, Martello Technologies Corporation, all issued and outstanding shares of Savision for an aggregate purchase price of $11,860,083, payable as follows: (i) a cash payment of $3,628,083 and (ii) the issuance of 18,709,090 shares in the Company’s share capital to the shareholders of Savision at a price of $.44 per share. A finder’s fee of $358,625 is payable to Sampford Advisors, who acted as exclusive M&A adviser to Martello on this transaction. In conjunction with the acquisition, Royal Bank of Canada (RBC) has approved a $3 million term loan to the Company.

Transaction Highlights:

Martello’s Recurring Revenue is Accelerated

Savision’s recurring subscription-based software has more than 900 customers, with 2017 revenues of over $4.5 million (CDN). Prior to this transaction, approximately 60% of Martello’s total revenues were from subscription-based sales of software products, and this will be accelerated with the acquisition of Savision. More than 50 new partners will be added to Martello’s channel sales program. Headquartered in Amsterdam, Savision has 32 employees.

Savision CEO Stefanie Richheimer Joins Martello as Chief Revenue Officer

Stefanie Richheimer, CEO of Savision, will join Martello as Chief Revenue Officer. Ms. Richheimer is a seasoned industry expert in Software, IT & Retail. She was the Managing Director for a market-leading consumer retail chain with 35 outlets before successfully leading her own start-up to become one of the key IT firms in The Benelux. Following that, Ms. Richheimer was an integral part of the Federal government’s Direct Foreign Investment team for the City of Amsterdam. She is also co-founder of AmsterdamPark Capital, an early-stage technology investor.

 Martello’s Sales Team will Double in Size with an Expanded Global Presence

Led by Chief Revenue Officer Stefanie Richheimer, the size of Martello’s sales and marketing team will double with this acquisition, accelerating the ability to cross-sell the Company’s suite of network and IT performance management capabilities to its growing base of channel partners and MSPs. The Company will have sales personnel in Canada, the US and Europe.

The Company will Pursue Joint Opportunities in Network and IT Performance Management

Martello will team its suite of network and IT performance management capabilities, developed over more than 8 years, to address joint opportunities to solve its customers’ problems.

Martello has a positive track record in acquisition activity, having acquired Netvitesse in 2014, and Elfiq Networks in December 2017. The Company’s solutions have been recognized by the industry.  In September, Martello received a Frost & Sullivan Leadership Award for NPM (Network Performance Management) and ranked as Ottawa’s Fastest Growing Company, at No. 28 on the Growth 500 list of Canada’s Fastest Growing Companies. The Company recently went public with a TSXV listing, following the closure of an oversubscribed $7.5 million private placement.

 About Martello

Martello’s solutions manage and optimize the performance of real-time services on cloud and enterprise networks. Our solutions, which include network performance management software and SD-WAN technology, allow over the top (OTT) service providers and enterprises around the world to deliver better service quality and a reliable user experience. Designed for real-time communications such as voice and video, Martello’s solutions detect, identify and address network performance problems BEFORE service quality is impacted. For information, visit: http://www.martellotech.com

 About Savision

Savision is a Microsoft Gold Partner founded in 2006 that provides enterprise software for the visualization of IT systems management data such as performance metrics, outage information and incidents. Deployed in over 50 countries around the world with more than 900 customers, Savision’s software is an ITOps solution that integrates and controls monitoring, cloud, and service management tools data in a single pane of glass. Savision’s products help IT teams reduce alert noise and control their IT environment. For more information, visit: http://www.savision.com

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements that address future events and conditions, which are subject to various risks and uncertainties. Actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Corporation’s control. These factors include: general market and industry conditions, risks related to continuous operations and to commercialization of new technologies and other risks disclosed in the Corporation’s filings with Canadian Securities Regulators.

Forward-looking statements are based on the expectations and opinions of the Corporation’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Corporation expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.