Xceed presentation to Analysts FINAL

Report
www.anite.com
PRESENTATION TO ANALYSTS
NETWORK TESTING ACQUISITION:
SIGNIFICANTLY EXPANDS ITS
DATA ANALYTICS CAPABILITY
CHRISTOPHER HUMPHREY, CHIEF EXECUTIVE
RICHARD AMOS, GROUP FINANCE DIRECTOR
3 OCTOBER, 2014
© 2014
AGENDA
1. THE CONTEXT
2. TRANSACTION HIGHLIGHTS
3. SUMMARY
4. Q&A
5. APPENDICES
© 2014
Page 01
ANITE NETWORK TESTING SOFTWARE SOLUTIONS
For drive testing
Nemo Outdoor
For outdoor
benchmarking
Nemo Invex
For indoor
benchmarking
Nemo Walker Air
For frequency
scanning
Nemo FSR 1
For indoor /
walk-testing
© 2014
For remote
control
Nemo Commander
For autonomous
monitoring
Nemo Autonomous
For post processing
& analysis
Nemo Analyze
For CEM
Nemo Handy
Nemo CEM Solution
Nemo In-Building
Coverage Meter
Nemo CEM Observer
Page 02
XCEED PLATFORM OVERVIEW
Multivendor
Data Source
XCEED TECHNOLOGIES INC., A US-BASED WIRELESS
NETWORKS DATA ANALYTICS SOFTWARE COMPANY
Right to Use
Model
Analytics
Intelligence
Network
Controllers
Network
Performance
OSS
Customer
Experience
Management
Drive Test
(3rd Party)
XYNERGY:
ENTERPRISE
WINDCATCHER:
DESKTOP
Network
Optimisation
Competitive
Benchmarking
GIS
Network
Acceptance
Multitechnology
© 2014
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SaaS
COMBINED ANALYTICS AND POST-PROCESSING PORTFOLIO
Data Collection
CEM
Solutions
Indoor
/Handheld
/Autonomous
Post-Processing and Analysis
Nemo Analyze
•
•
•
Desktop solution for analytics and trouble shooting
Performance and simplicity for single user environment
Optimised for drive-test teams and Nemo tool chain
WindCatcher
Drive Test
Scanners
For analysis and optimisation, scalable desktop
solution
All data sources and all test tool vendors supported
Feature rich catalogue product for global market
•
•
•
Benchmarkers
Xynergy
•
•
•
•
•
Data Feeds
OSS
OSS
OSS
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Probe
Probe
Probe
•
Enterprise level solution for operators
BIG DATA approach
OSS interface adaptation
All data sources supported
Integrated CEM and benchmarking data
analysis
Feature rich, customised to need
EXPANDS NETWORK TESTING’S ADDRESSABLE MARKETS
Operational
Quality
Approx. Current Annual Market Size*
£170m
£120m
£85m
£850m
Drive testing
£30m
Data Analytics**
£20m
CEM**
£60m
CEM
£1b
SON
£240m
Analytics
Indoor
Scanner
Benchmarking
ANITE CORE MARKET
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Scale only approximate
* Source: Anite Internal Estimates (September 2014)
** Currently Addressable Market Estimate for Anite Products
NON-CORE MARKET
ANITE + XCEED: AN ENHANCED COMPETITIVE POSITION
Drive Testing
Optimisation
Benchmarking
Indoor /
Handheld
Autonomous
Data
Analytics
Scanners
Ascom
SwissQual
(R&S)
Accuver
Actix
(Amdocs)
Market leader
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Significant presence
Limited presence
CEM
ACQUISITION CONTEXT – STRONG STRATEGIC RATIONALE
1. Consistent with Anite’s strategy to reinforce its position as a global leader in
wireless test solutions
2. Anite has a good track record of identifying, negotiating, completing and
integrating acquisitions
3. Data analytics is a customer-driven extension of Anite’s core network testing
market
–
Driven by the increasing complexity of mobile networks, the growth in mobile data traffic and
increased demand for network analysis
–
QoE and CEM are becoming key differentiators for operators; network performance and coverage
need to be constantly measured, monitored, analysed and optimised.
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ACQUISITION CONTEXT – STRONG STRATEGIC RATIONALE
4. Transforms Anite’s strategic market position in network testing market
–
Strengthens our existing product profile with immediate, high quality product endorsements and
reference sites
–
Reflects growing trend towards enterprise solutions; growth platform in high value market
–
More complete offering
5. Generates a stronger recurring revenue stream
–
Approx. 45% of Xceed’s revenues are from recurring maintenance, hosting and support; improves
the revenue profile of Anite’s Network Testing business
6. Build on Xceed’s success in North America and extend its global product reach via
global Network Testing sales channel and distributors
7. Win new Nemo Drive Testing business market share in North America
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Page 08
ACQUISITION HIGHLIGHTS – THE TRANSACTION
● Anite has acquired Xceed Technologies Inc.
● Consideration of $30m paid in cash upon closing on a cash free/debt free basis
from Anite’s existing cash resources:
–
$5m retained in escrow
–
Up to $5m additional deferred cash consideration dependent on the achievement of revenue
targets in the years ending 30 April 2015 and 2016
● The acquisition is expected to be enhancing to Anite’s adjusted earnings per
share in the current year
● Xceed is a good fit with Network Testing
–
Existing management being retained, led by founders
–
Headquartered in the US in Chantilly, near Washington D.C.
–
55 employees and a small number of overseas contractors
–
Broad customer base with bias towards North American tier one customers
–
Privately held by 5 shareholders, 3 of whom are executive officers
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XCEED TECHNOLOGIES INC – FINANCIAL OVERVIEW
● Results achieved on equivalent IFRS basis
–
2013 revenue of $11.8m generating EBITDA of $1.6m
–
Gross assets being acquired amounted to c.$3.5m as at 31 August 2014. Net assets on
completion are expected to be $1.7m
–
Strong recurring maintenance, hosting and support revenues
● Revenue and profit improvements expected
–
Win market share in the growth area of data analytics
–
Increased sales of WindCatcher and Xynergy via Nemo’s global sales and distributor network
Revenue by Type
6,000
5,000
US$000's
4,000
3,000
2013
2,000
1,000
Licence
© 2014
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Hosting & Services * Other **
Support
INTEGRATION PLAN
● Xceed will be integrated within and will report as part of Anite’s Network
Testing business
● Common Product Portfolio and Roadmap
● Xceed will become Anite’s ‘data analytics’ centre of excellence
● Full implementation of Anite systems, financial reporting, controls and
processes
● Develop global sales in short-term through WindCatcher and long-term through
Xynergy
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Page 11
ANITE NETWORK TESTING / XCEED COMBINED SALES NETWORK
Switzerland
Austria
Poland
Italy
Hungary
Bulgaria
Germany
Czech Rep, Slovakia
Romania, Moldova
Serbia
Greece,
Albania,Cyprus
Nemo Sales Finland
The Netherlands
Canada
Xceed Sales USA
Nemo Support USA
Nemo Support USA
Nemo Sales USA
Nemo Support USA
Nemo Support Finland
Xceed Europe
Nemo Sales UK
Nemo Sales France
Nemo Sales Russia
Nemo Support China
Nemo Support France
Spain
Nemo Sales Hungary
Jordan,Syria,Lebanon,Iraq
Israel
Nemo Sales USA
Nemo Sales USA
Morocco
Caribbean Islands
Mexico
Tunis, Algeria,
Libya
Central America
Saudi Arabia
Nemo Support UAE
Peru
Chile
Network Testing Distributor
Network Testing Sales
Network Testing
Customer Support
Xceed Sales Managers
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Ivory Coast
Nemo Support Singapore
Memo Sales India
Thailand
Philippines
Nemo Support Brazil
Brazil
Argentina
Sri Lanka
Indonesia
Malaysia
Nemo Sales Brazil
Xceed CALA
Nemo Sales Singapore
Vietnam
India
Nemo Support India
Venezuela and Guyanas
Ecuador
Taiwan
Pakistan
Egypt, Sudan
Nemo Sales Colombia
China
Xceed SAARC
Nemo Sales UAE
Costa Rica
Nemo Sales China
Nemo Sales Germany
Sub-Saharan Africa
Australia
New Zealand
SUMMARY
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SUMMARY – EARNINGS AND BUSINESS ENHANCING
1. In line with Anite’s strategy to invest proceeds of Travel sale in growth
opportunities in the wireless market
2. Strengthens the Network Testing business, creates a dedicated supplier with a
more complete product offering and significantly increased global sales channel
3. Significantly enhances Network Testing’s product portfolio reflecting the growing
trends and operators’ focus on QoE and CEM
4. We are buying significant technology expertise in a developing, high-margin
growth market
5. Consideration payable from Anite’s existing cash
6. Earnings enhancing in the first full year of ownership
7. Retain financial resources for further investment in growth opportunities
© 2014
Page 14
www.anite.com
THANK YOU
ANITE PLC
ANCELLS BUSINESS PARK
HARVEST CRESCENT
FLEET
HAMPSHIRE GU51 2UZ
UNITED KINGDOM
+44 (0) 1252 775200
© 2014
Page 15
DISCLAIMER
The information contained in this publication was obtained from various sources believed to be reliable,
but has not been independently verified by Anite plc (“Anite”). Anite does not warrant the
completeness or accuracy of such information and does not accept any liability with respect to the
accuracy or completeness of such information, except to the extent required by applicable law.
This publication is a brief summary and does not purport to contain all available information
on the subjects covered. Further information may be available on request. This publication
may not be reproduced for further publication unless the source is quoted.
This publication is for informational purposes only and shall not be construed as an offer or
solicitation for the subscription or purchase or sale of any securities, or as an invitation,
inducement or intermediation for the sale, subscription or purchase of securities, or for
engaging in any other transaction.
This publication is not intended for use by private individuals.
© 2014
Page 16
APPENDICES
© 2014
Page 17
ACQUISITION APPROACH
● Selective product and IP acquisitions supplementing future organic growth in both
Handset and Network Testing
● Strict financial criteria
● Closely related existing and adjacent growth markets
● Leverage customer relationships, sales channels and technology
● Likely to be smaller than Propsim
● Pipeline of opportunities; timing difficult to predict
● Track record identifying, negotiating, completing and integrating acquisitions
REINFORCING ANITE’S POSITION AS A
GLOBAL LEADER IN WIRELESS TEST SOLUTIONS
© 2014
Page 18

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