Swedish-based cyber security company Cognosec has completed the acquisition of 100% shares of SA-based distributor Intact Software Distribution for EUR506 000 (R3.8 million).
The Nasdaq-listed Cognosec has operations in Europe, Africa and the Middle East. It says the acquisition is in line with its strategy to expand business areas to cover the sale and distribution of software technologies over the Internet.
The transaction has been completed by Cognosec and will be injected into subsidiary, Credence Security.
Intact is a digital software distribution business, specialising in providing cyber solutions from tier-one vendors.
The distributor has a range of security solutions, including Avira, Avast, AVG, Bitdefender, Cybonet, F-Secure, Group-IB, Veriato. The company also has its own penetration testing division to help organisations mitigate any potential risks.
According to Cognosec, the Intact business is well-established and EBITDA-positive, recording revenue of over EUR506 000 (R8 179 996) and EBITDA of EUR18 000 (R300 000) in the full financial year 2016, and revenue of over EUR745 000 (R12 million) and EBITDA of over EUR38 000 (R614 000) in the full financial year 2017.
It points out the acquisition of Intact improves Cognosec's competitive advantage for both vendors and customers alike. This addition also expands Credence Security's product portfolio to incorporate cyber security solutions for secure operation centres; network operation centres; security information and event management; data centres; mobile platforms; virtualised environments; as well as providing critical fraud prevention solutions to the technology, media, telecommunications, financial and also its burgeoning public sector business.
"The motivation behind acquiring Intact is that the resulting combination of products, key people and existing pipeline will allow us to operate in new markets, accelerating growth opportunities, and expanding our global footprint," says Patrick Boylan, group MD of Cognosec.
"We found a tremendous synergy between Intact and Cognosec's offerings, which will allow us to offer additional solutions to our existing customers, to ensure all of their security needs are met."
According to Boylan, the deal will help Cognosec to build a global cyber security business, by strengthening its software portfolio and go-to-market capabilities with additional sales capacity and a strategic partner network.
"We are looking at growing our reach in the EMEA region, and Intact is perfectly situated to help us do that. We boast similar cultures, and our people are a great fit. Together we will provide unparalleled service in the area."
Simon Campbell-Young, Intact's co-founder and CEO, says: "We are thrilled that Intact will be involved with this hugely exciting phase of growth within the Cognosec family. We have spent many years building our business within Africa and we can now escalate and accelerate our offerings on a global scale, through the enviable synergies that are now offered as part of a much larger group."
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