Cipherpoint to Acquire Cyber Security Services Platform Brace168
Cipherpoint entered into a binding term sheet to acquire 100% of the issued capital in cybersecurity services platform Brace168 Pty Limited (Brace168).
SYDNEY, January 25, 2021 (Newswire.com) - Cipherpoint (ASX:CPT) is pleased to announce that it has entered into a binding term sheet to acquire 100% of the issued capital in cybersecurity services platform Brace168 Pty Limited (Brace168).
Brace168 was established in 2017 by its founder Greg Bunt, with Matt Miller joining as a Senior Executive, to provide managed detection and response services to medium and large-scale businesses and enterprises, based in North Sydney. The foundation of the business is its scalable, next-generation Security Operations Centre platform aligned with ISO27001 and Crest accreditations and is NSW Government panel approved. From inception, Brace168 has invested heavily in intellectual property and standards' certifications. Brace168 derives its name from 'strengthened 24x7 security'. Brace168 has a high percentage of annuity revenue.
Brace168 builds innovative IT and cybersecurity solutions that work seamlessly across business and enterprises or government agencies. Its customers are across the financial property, manufacturing, technology and health sectors. Cipherpoint's existing products will be offered to those customers. A unique feature of Brace168's offering is its ability to manage multi-vendor customer environments within and across national boundaries supported by data and security analytics. This is highly complementary to the data centric approach of CPT. Key customers access Brace168 services through points of presence in data centres in Australia, the U.S. and Europe.
The consideration for the acquisition of 100% of the issued capital of Brace168 from the shareholders of Brace168 is a mix of cash and CPT securities, being $3M cash, 21.75M shares and 5.4375M options, subject to any necessary shareholder or other regulatory approval which will be sought as a condition to the proposed acquisition. The cash payment will be split over two payments, with $2M payable on completion and $1M 12 months post completion. An additional 14.2M shares are to be issued on achieving FY21 and FY22 financial milestones described below.
CPT Chairman Ted Pretty said: "The Cipherpoint team are excited that the founders of Brace168 will be joining us on the journey to offer best of breed solutions to the business and enterprise market both locally and internationally. Our focus has been to acquire a business with a strong and complementary platform, and which has an attractive organic growth trajectory. Acquiring Brace168 gives CPT the ability to compete aggressively in the market. In my opinion, it enables CPT to scale with an integrated offering and will be a more attractive investment option than other cyberconsulting rollups underway in the market."
Brace168 spokesperson, Greg Bunt said: "We are excited about the prospect of joining Cipherpoint and its team at this critical stage of our growth journey. In our opinion, Brace168 has the potential to set new standards in cyber security including providing managed detection and response services, security analytics and data protection. We remain committed to ensuring our customers are provided best in class service and support and to be the clear choice of supplier, partner and employer."