Ted Pretty (Cipherpoint)
Publicly listed cyber security provider Cipherpoint (CPT) has acquired managed IT and security services company Excite IT for $3.25 million.
Excite IT founder Bryan Saba will join the CPT leadership team as managing director and CEO and will remain in his CEO role of Excite IT.
Founded in 2007, Excite IT optimises information technology platforms and processes for its enterprise customers and implements cyber security solutions with customers spanning property, logistics and food industries.
During FY22, Excite achieved revenues in excess of $3 million and is also an existing channel partner of CPT’s subsidiary Brace168.
The addition of Excite IT will extend CPT’s capabilities in offering a range of managed security, IT and cloud solutions.
Excite founder Bryan Saba said it has maintained a strategic relationship with Brace168 for some time and will be extending this capability to deliver a broader range of cyber services for its clients.
CPT chairman Ted Pretty added the acquisitions continues Cipherpoint’s momentum as a cyber and cloud services business.
“It is our intention to actively cross-sell the unique capabilities of both Excite IT, Brace168 and VITCS,” Pretty said. “CPT will support Excite IT as it continues to focus on growth in FY23.”
The acquisition price will be structured as a combination of cash and scrip up to $3.25 million consisting of upfront, deferred and performance-based earn out elements.
On Tuesday, Cipherpoint raised a further $800,000 and its cost reduction program has achieved more than $1 million in costs removed. A further $400,000 in costs is being targeted in a second phase of reductions, which involves changes to its board arrangement and management structure.
This has seen head of product Hugh Stodart move to take over the day-to-day responsibility of Brace168, whereby its founders Greg Bunt and Matt Miller will move from full time employees to contractors at the end of August. They will continue as members of Brace168’s customer advisory council.
Cipherpoint released its financial results for the year ending 31 March also on Tuesday, recording a final revenue from continuing operations of $4 million. A final impairment of goodwill was also reported costing $6.2 million with a final loss after income tax expense sitting at $9 million.
During the year, Cipherpoint executed a strategy to acquire and integrate cyber security services businesses alongside its commericalising cyber security software operations, which has significantly increased operating revenues and delivered a diverse mix of marquee customers into the business.
Cipherpoint is continuing to invest in sales, pre-sales and technical resources together with its enhancements to its security operations centre in North Sydney.
