The deal will see Velpic combine its online learning platform with NowForce to provide a first-mover solution to new and existing clients of both platforms.
It opens up two new revenue streams for Velpic, firstly, NowForce will sell Velpic’s learning product embedded into its current products.
Secondly, Velpic has been chosen as the sole distributor of NowForce’s products into the US$8.8 billion Australia and New Zealand security sector.
NowForce has an expanding blue-chip client base
The NowForce platform consists of three integrated public safety apps.
The safety apps are for campus security, private security, and public safety organisations, enabling reduced response times, full situational awareness, and enhanced communications.
NowForce has an expanding blue-chip client base and partnership model with over 100 enterprise grade clients.
Velpic’s learning management system
Velpic’s current next-generation learning management system (LMS) is targeting the growing LMS market, which is expected to be worth $15.72 billion by 2021.
It is a software-as-a-service (SaaS) based application that allows anyone to create and distribute training to anyone on any device.
Velpic has specialised its platform and training content to focus on high-growth verticals including schools, sports, infrastructure, construction and most recently franchises.
The global security industry is the next vertical that Velpic will address by partnering with NowForce.
Bringing online learning to the security industry
The partnership will result in a global first-mover advantage solution for the security industry.
The combination of incident management (NowForce) with prevention and education (Velpic) results in the only integrated incident management and prevention solution globally.
NowForce will sell the integrated solution to its 100+ existing clients including multinationals, US federal agencies and a number of North America’s most prestigious universities.
Velpic to sell NowForce in Australia and New Zealand
NowForce has chosen Velpic as its sole distributor in Australia and New Zealand, which represent a growing $8.8 billion market.
The partnership is already yielding results with a top-tier Australian University with more than 28,000 students and 1,800 staff purchasing NowForce to manage campus security.
Velpic’s track record of revenue growth
The new revenue streams will support Velpic’s strong recent revenue growth exhibited in the 2017 financial year and in the recent September quarter.
Annualised recurring revenue increased 136% from September 2016 to September 2017.
Similarly, new clients and upgrades increased 142% over the same period.
Funding on track, recent placement oversubscribed
The partnership involves Velpic making its first strategic investment, which will see it take a ~5% equity stake in NowForce for US$1 million.
This investment alongside the NowForce product roll-out and integration work will be funded by a placement and rights issue.
Earlier this week, Velpic received commitments to raise $0.9 million in an oversubscribed placement.
The successful placement will be followed by an upcoming 2:5 non-renounceable rights issue to raise up to an additional $2.17 million.
Rights issue partially underwritten
Eligible shareholders can apply for two shares priced at $0.008 for every five shares held on the record date.
Applicants will also receive two new options exercisable at $0.02 and expiring 30 November 2019 for every seven shares applied for.
The rights issue record date is 6 December 2017 and the closing date is 20 December 2017.
The offer is partially underwritten to the value of $1 million.