Investor Insight

Adisyn’s innovative products and services leveraging a multi-billion-dollar Australian defence market and focusing on the underserved, high-potential SME market, provide a compelling investment case for technology investors.

Overview

Adisyn (ASX:AI1) is an ASX-listed company offering a comprehensive suite of products and services to SMEs operating in the fast-growing Australian defence industry supply chain. The company’s service offerings revolve around data protection, management and security. Adisyn has been focusing on cybersecurity and AI as the two key growth areas, confident these two verticals will offer significant growth opportunities as the data centre and cloud markets evolve.

The Australian Government plans to inject an extra $5.7 billion into its defence capability by 2027-28, with an additional $50.3 billion allocated for the following decade until 2033-34, surpassing previous projections. This funding surge will escalate the defence budget to approximately $100 billion by 2033-34, totaling $765 billion over the decade. Moreover, the government will earmark $15 billion to $20 billion specifically to bolster cyber domain capabilities during this period.

The surge in Australian defence spending is fueling demand for SMEs that operate in the defence supply chain. SMEs are ill-equipped to handle cybersecurity threats and need a trusted partner who specializes in cyber threat protection, regulatory compliance, and IT security infrastructure management. Adisyn is dedicated to becoming the go-to partner for SMEs aiming to enhance their sovereign data and security practices, particularly in sectors where national security concerns necessitate rigorous data protection measures.

To achieve this, Adisyn has laid out a four-phased strategic plan. The first phase, completed in 2023, focused on business restructuring, rebranding and bringing new management. The second phase, ongoing in 2024, focuses on the expansion of the advisory board, IP development, strategic technology partnerships, and business development. The company has commenced the expansion of the advisory board with the appointment of Harry Karelis in February 2024. Karelis will focus on identifying and securing strategic partnerships and assisting with investor relations and general business development activities.

In July 2024, Adisyn announced a collaboration agreement with 2D Generation, an international semi-conductor IP business. The two companies leverage artificial intelligence to advance the development of high-performance, energy-efficient semiconductor solutions crucial for AI and data centres.

The company anticipates the announcement of several key strategic partnerships that will significantly expand its current suite of cyber capabilities and distinctly set Adisyn apart in the marketplace.

During its third and final phase, scheduled from 2025 to 2026 and beyond, the company will aim for Australia wide expansion and acquisitions and strive to establish itself as a preferred service provider to SMEs operating in the defence supply chain.

Company Highlights

• Adisyn is an ASX-listed technology company focused on Australia’s defence industry supply chain.
• Adisyn is aiming to become a preferred supplier to SMEs in the Australian defence industry supply chain, offering a range of solutions, particularly in the cybersecurity and AI domains.
• Australia’s defence budget is expanding, as led by the AUKUS security deal. Western Australia is leading the charge, with the state government aiming to double the value of its defence industry to $6 billion by 2030.
• SMEs involved in critical national security and defence projects do not have sufficient technological capabilities around AI and cybersecurity. Adisyn, with its vast experience in cyber threat protection and IT infrastructure management, is well-equipped to help these SMEs meet their technology and security obligations.
• Adisyn has launched a four-phased strategy to become the leading service provider in the defence supply chain market by 2026. Phase 1, which included business restructuring, rebranding, and new management, has been successfully completed. Phase 2, which is ongoing, will see the expansion of the advisory board, IP development, strategic technology partnerships, and business development.
• The company offers investors an attractive way to gain exposure to the fast-growing Australian defence industry supply chain.

Key Services

Cybersecurity and Advisory

Adisyn offers end-to-end cybersecurity solutions designed specifically to suit individual needs. The company is persistently advancing a range of new cybersecurity services tailored to help businesses navigate their responsibilities regarding handling personal data under the recently enacted Privacy Legislation Amendment (Enforcement and Other Measures) Act 2022. These services encompass threat intelligence, contextual security operations, and an AI-driven personally identifiable information de-identification tool.

The company plans to focus on expanding the services offered under the new cybersecurity division through new partnership agreements. Separately, Adisyn plans to begin developing new cybersecurity-focused AI-powered microservices.

IT Managed Services

Adisyn’s complete IT managed service offering covers all aspects of the IT environment. It ensures that its clients’ IT infrastructure runs smoothly and promises minimal downtime for their IT systems.

Secure Private Cloud

The offering aims to secure clients’ data, ensuring business continuity and disaster recovery.

Management Team

Shane Wee – Non-Executive Chairman

Shane Wee has spent the last 30 years in the financial services industry. He was the founding director of Alto Capital until his retirement in June 2021. During his career, he held various corporate and advisory roles with several ASX entities, building an extensive network of contacts across Australia and Southeast Asia.

Blake Burton – Managing Director

Blake Burton has been the managing director of Adisyn since July 2022. With considerable expertise in the IT sector, he established his own web hosting company, which he later successfully sold in a trade deal to Australia’s largest privately owned web host.

Justin Thomas – Non-executive Director

Justin Thomas brings over 20 years of experience in the IT industry. In 2007, he founded a real estate software business, which he sold to RP Data. In 2012, he built and sold a data centre to Amcom, now known as Vocus.

Paul Arch – Chief Operating Officer

Paul Arch brings extensive technology expertise, having been involved in numerous successful ventures in the Australian technology space. He is the founder of Datamate Backup Services and DC West Data Centre in Perth and played a pivotal role in their establishment.

Jesper Sentow – Chief Financial Officer

Jasper Sentow has over 25 years of experience serving as a chief financial officer and company secretary for public and private Australian and international companies spanning Europe, India and Southeast Asia. Sentow brings expertise in corporate financial management, strategic planning, corporate governance and commercial enhancement.

Harry Karelis – Chair of the Advisory Board

Harry Karelis boasts over 30 years of experience in capital markets and holds a master’s degree in cybersecurity operations from the Australian defence Force Academy/UNSW. His areas of specialization encompass financial analysis, funds management, and private equity. Additionally, Harry possesses a robust background in technology startups, with a particular emphasis on cybersecurity, AI and defence sectors.

Jesse Gane – Chief Technology Officer

Jesse Gane is currently the director of space, cyber and federal government services at Downer Group. Gane is highly experienced in managing critical contracts with national responsibilities and fostering strong partnerships between organisations, government entities, and industry partners. He worked in the Australian Navy as a submariner with specialist communication and cybersecurity skills. His efforts in system architecture and product delivery have left an enduring mark on naval operations, earning accolades for his commitment to excellence and innovation. Gane has unique insights into the interactions between commerce and government, as well as the unique challenges facing small and growing companies seeking to bolster their internal systems.