February has been a busy and very successful month for cloud network solutions group NetLinkz Limited (ASX: NET).
NetLinkz is the creator of the Virtual Invisible Network (VIN), a globally patented network technology that allows organisations to quickly connect sites, devices and staff over the Internet through a unique network solution that is generally invisible.
NetLinkz’s technology makes Fortune-500 security commercially available for organisations of all sizes and the company has received numerous industry awards for its technology, including being a worldwide winner of the Global Security Challenge.
Its recent successes have a great deal to do with the 80 per cent majority ownership it has in Beijing iLinkAll Technology Co. Ltd.
Beijing Municipal Bureau of Economics and Information Technology selected iLinkAll’s Virtual Secure Network (VSN) remote working product to help it fight the coronavirus and enable people to work and receive safe and secure information.
Far from being disadvantaged by the coronavirus, alongside multiple Chinese software companies including JD.com, We Chat, and a number of Alibaba subsidiaries, iLinkAll is the only majority foreign owned entity in a consortium of software companies working together to provide innovative solutions to tackle the coronavirus epidemic.
Beijing will roll out the technology first, with the Chinese government investigating nationwide adoption.
Commenting on the importance of this development, executive chairman James Tsiolis said, “We are proud to be supporting the people of Beijing during an extremely difficult period for the city and the people of China.
‘’iLinkAll’s VSN has been selected as the city’s first batch of ‘remote and mobile’ technology solutions to help small to medium-sized companies and their professional workers remotely log into their office and help those businesses get back to work.
“We anticipate a similar program will be initiated nationally to assist other impacted cities and communities.
“We also believe being a selected provider by the Beijing Government will deliver increased visibility of our capabilities to the Chinese business community.”
Further adoption of the technology
Today, NetLinkz announced iLinkAll would provide development and technical services in conjunction with its software to Pinnacle Shanghai whose customers include Morgan Stanley, Nomura and Aon Insurance.
The one year contract agreement will generate revenues for iLinkAll of RMB 1,000,000 (A$225,000) and will lead to a second phase of revenue generation to provide additional on-premise services and licences according to demand from Pinnacle’s clients.
Just last week, the Beijing iLinkAll Science and Technology company signed an agreement to provide its Virtual Secure Network software to a World Bank sponsored initiative to improve water supply and sanitation services in selected areas of the Deyang Municipality of the Sichuan Province which has a population of 81 million.
The project is a public private partnership initiated by the World Bank.
iLinkAll will provide development and technical services in conjunction with its software to the project.
The VSN software will provide secure remote connectivity of the automation control system and information management system integration platform for the project.
The agreement is expected to generate material revenues for iLinkAll with the already commenced 16-week design and implementation phase of the agreement providing upfront income of $1.1 million.
iLinkAll will also receive ongoing monthly licence fees once the design and implementation phase is completed.
SSI acquisition to generate annualised profits of $1.5 million
Another important development this year was the completion of the $10.2 million acquisition of Security Software International (SSI) Pacific, which is expected to generate annualised profits of $1.5 million.
As well as generating strong earnings, similar to NetLinkz’s other businesses it benefits from established relationships in Australia and the increasing demand for security across the tech industry.
Commenting on the acquisition of SSI and its ideal fit with NetLinkz’s other businesses, Tsiolis said, “In SSI we have acquired a high quality, value accretive business that provides strategic synergies and global growth opportunities to NetLinkz.
‘’SSI has outstanding relationships in the Australian market, and we are excited to work closely with SSI to develop an innovative combined enterprise solution that meets the security and monitoring demands of these existing clients and modern businesses around the globe.”