Most successful SaaS companies have built a comprehensive sales and distribution network among many Microsoft, Autodesk, Dassault, Adobe and SAP. With MTWO RIB offers a SaaS solution in the market as a platform and eco-system of applications very suited for this strategy.
MSP’s have key domain expertise in cloud technology and as such little regarding client server- and desktop-based technologies. RIB fully believe in the movement towards cloud, while these key skills of the MSP network will be a highly valuable expertise and we believe that the supply and demand equilibrium will change putting more power with the MSP’s. RIB is mainly focusing on a specific blueprint including but not exhaustive:
• Asset light and not former “hardware as a service” type of companies
• Clients or IP’s in construction
• Access to markets where RIB would have difficulties in entering organically
• Strategy to develop from horizonal service company into vertical focused and IP focused business
• Year on year growth preferable top- and bottom-line
• Strong management and team
As such our investment thesis is, that we can buy undervalued assets, with proceeds earmarked for building a dedicated MTWO team under the management of the MSP dedicated to selling and deploying MTWO in accordance with the business plan.
It is important to understand the underlaying business of an MSP. Besides being experts in spinning up software on cloud- and preferable Azure stack, the MSP’s of interests to RIB have different core capabilities such as Data Security, AI and Bot services, Big Data, Scalability, cloud resource optimization and more. No one MSP holds these capabilities to best-in-class levels, why part of our strategy is to build a global network of MSP’s for distribution. ICS and A2K Technologies have specific capabilities which will prove valuable.
First wave (of several waves to this sale- and distribution strategy) is to secure an equity stake in a selected number of MSP’s following the above, and then expand with other waves to this strategy.
RIB does not buy a majority, as we want the MSP to have management control and execute on the value creation. However, we do have options in place for buying the majority making it a possibility to consolidate the network in the future.