DataMotion Asia Pacific (ASX:DMN) has announced it will significantly invest in its local data centre and go on the acquisition trail following a recent capital raising rights issue.
In a quarterly update ASX statement, the secure information exchange company said around $1 million from the rights issue would fund the search for a profitable technology-based acquisition target to expand the company’s portfolio and leverage its existing technologies and data centre.
Funds from the rights issue will also be used to transform the DataMotion Asia Pacific DataCentre into a “boutique high-end hosting facility” to capitalise on the shortage of commercial data centre space in Western Australia, and provide additional revenue streams.
The company also flagged it was exploring a partnership opportunity with SingTel Optus and Alphawest Services to use DataMotions’s data centre as a hosting facility for customer equipment and managed services.
DataMotion’s solutions include email encryption, large file transfers, electronic forms and programmatic APIs.