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Manalto Ltd Opens Another Sales Channel For Social Media Software

Manalto Ltd (ASX:MTL) has signed a strategic distribution agreement with Ingram Micro Inc. (NYSE:IM) and certain affiliates.

Manalto provides companies with software to manage social media, it has two products, Sóshlr and Manalto Enterprise.

The agreement will allow both Sóshlr and Manalto Enterprise to be resold via the Ingram's cloud marketplace (online store).

This is the first time Manalto Enterprise will be sold through a cloud marketplace.

Manalto has already signed distribution agreements for Sóshlr with Globe Telecom (NYSEMKT:GLO), Telstra (ASX:TLS) and Plesk.

Ingram is a U.S. global provider of cloud, mobility, supply chain services and technology solutions with a network of more than 200,000 reseller customers.

Following execution of the distribution agreement, the parties will proceed to the planning phase for deployment.

Background

Manalto has two products, Sóshlr, which is targeted at SMEs and Manalto Enterprise, which is targeted at larger businesses.

Sóshlr and Manalto Enterprise give customers an easy to use social media management solution.

This means businesses have greater control to coordinate brand management and marketing inside Facebook, Twitter, Linkedin and Instagram from a single online dashboard.

Sóshlr is distributed exclusively via channel partners to SMEs and customers may purchase 1-50 licenses.

Manalto Enterprise is sold to larger enterprises with customers purchasing 50+ licenses. Manalto Enterprise has previously been sold directly but this agreement will allow it to also be sold by channel partners, similar to Sóshlr.

Revenue is generated through a subscription based model where customers pay a monthly fee depending on the numbers of licenses required.

Recent distribution agreements

Manalto has signed recent distribution agreements with Globe Telecom, Telstra and Plesk.

Globe Telecom and Telstra are major providers of telecommunications services in the Philippines and Australia respectively.

The distribution agreements with Globe and Telstra allow their customers to purchase Sóshlr.

Plesk is a WebOps platform with a global network of 2500+ hosting companies who sell web and hosting services to an estimated addressable market of 8 million small and medium sized enterprises (SMEs).

The agreement with Plesk will allow web professionals, developers and designers to manage all social media needs for their end customers.

Analysis

This agreement represents a strategic milestone for Manalto as it builds its channel growth strategy to now include Manalto Enterprise for the first time.

By continuing to sign distribution agreements, Manalto is growing its addressable market and increasing its ability to grow sales.

The social media industry continues to grow with the number of small business account users on Facebook having doubled to 50 million from 2013 to 2016.

Manalto is still in a growth phase and has established two competitive products that it can sell through vendors, cloud platforms and resellers.

News flow surrounding the signing of new clients and distribution agreements will continue to act as catalysts for the company.

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