Data#3 finalises investment in Wi-Fi analytics company

Australian business technology solutions leader Data#3 Limited (ASX: DTL) is pleased to announce that, following detailed due diligence, it has exercised its option to acquire a 42.5% shareholding in Wi-Fi analytics company Discovery Technology Pty Ltd (“Discovery”). As part of the transaction, Data#3 has an option to acquire an additional 14.2% on the same terms by 30 June 2015 and a further option to acquire the balance of the shares in the company at market price by 30 June 2017.

Data#3 has agreed to pay $1.5 million to acquire 42.5% of the shares in the company, and to provide $1 million in working capital to fund the ongoing development of the business.

Discovery has been delivering technology and software solutions and providing technical support to SMB, corporate and government clients since 1997. In 2013 the company launched an analytics, location and customer communication software product, the Discovery Connected Customer-xperience (“CCX”). CCX is software deployed over Wi-Fi networks to enable Wi-Fi network owners to create value and potentially monetise their Wi-Fi network infrastructure through customer analytics and location aware monitoring and communication combined with delivery of numerous media and business applications.

The first CCX customers were commissioned in the second half of 2013 and Discovery has continued to develop and evolve the CCX platform to provide one portal for all forms of analytics, location and communication within a Wi-Fi enabled environment. The CCX platform is today operational in numerous venues including shopping centres, retail premises, universities, gaming, outdoor locations and hospitality, and has the potential to further expand to any Wi-Fi enabled site or space.

Data#3’s relationship with Discovery commenced in mid-2013 as a reseller of the CCX solution. Data#3 will retain this reselling relationship on an arm’s length basis and manage it separately from the investment to ensure the integrity of Discovery’s relationship with other resellers of the solution.

Data#3 Managing Director, Mr John Grant, said “We are delighted to have secured this stake in the rapidly growing Wi-Fi sector and to do it with a solution that’s built for the cloud and capitalises on demand for consumption based investment”.

“This investment offers Data#3 an opportunity to be at the forefront of this exciting and growing area and aligns with two elements of our strategy – to be a leader in the cloud marketplace and a participant in the applications sector particularly where it influences our customers’ downstream investment in infrastructure and managed services,” he said.

Data#3 Chairman, Mr Richard Anderson said “Having completed due diligence successfully, we intend to fund the investment from cash flow without impacting shareholder dividends.

“John Grant will be appointed to the Discovery Technology board to guide what we expect to be a very exciting and substantial opportunity over time for Data#3.”

Discovery’s co-founder and shareholder, Brendan Williams commented “Over the last two years we’ve made significant headway in developing and taking our Wi-Fi analytics solution to market, but this is a new venture for us and having Data#3 as a strategic investor strengthens the relationship we have with Cisco and will provide us with the financial support, guidance and stewardship a typical “start-up” technology requires to deliver the outcomes we see are possible.”

Industry analyst Gartner recently reported that, with almost 70% of adults in Australia now owning Wi-Fi enabled mobile devices, 86% of them looking for local information on their device as they move about and 88% taking action as a result, the opportunities that are emerging across retail, education, airport and public venues and facilities to respond to these behaviours and to enhance their experiences through their Wi-Fi connectivity have never been greater.

Data#3 finalises investment in Wi-Fi analytics company (PDF)

Access this webcast here.

Tags: Data#3 News, Featured



Blog: 5-reasons-to-ramp-up-your-technology-intelligence
5 reasons to ramp up your technology intelligence

It is a tough time for anyone managing a budget. Every organisation, from the smallest corner shop to the big-name…

Tech Intelligence Periodic Table
The Technology Intelligence 360 Periodic Table

Technology Intelligence is the ability to understand and manage all your technology assets. It’s cost, usage, compliance as well as…

Choose your own journey to Power BI success

Power BI is Microsoft’s self-service business intelligence (BI) tool that brings powerful data analytics to your employees. As a…

Why would you deploy SASE?
If Secure Access Software Edge (SASE) with Cisco Meraki is the destination, what does the journey to get there look like?

Firstly, let’s set the scene. The term SASE was first mentioned by Gartner Analysts in July 2019 and Gartner continues…

Simplify the way you access and view data with Power BI

What if you could simplify the way you access and consume data to help manage your business? With tools like…

Your Guide to Replacing Data Panic with a Data Plan

Businesses today are often juggling multiple data streams stored across a variety of different channels, making it difficult to harness…

Your Azure Modernisation and Migration Options
Your Azure Migration and Modernisation Options

As of July 2022, Microsoft SQL Server 2012 was officially unsupported by Microsoft, with Windows Server 2012 also reaching its…

Smart spaces are changing the workplace
Will Smart Spaces Be a Game-Changer in Your Workplace?

Many elements of smart space technology were already theoretically possible, but integrating sensors and smart cameras, for example,…