Cipherpoint Ltd (ASX:CPT) has signed a sales and purchase agreement to acquire Brace168 Pty Ltd following the satisfactory completion of due diligence.
The acquisition of Brace168 will create new momentum for Cipherpoint.
An EGM to approve the overall Brace168 acquisition will take place at 10am (Sydney time) on March 31, 2021.
Terms of the agreement are consistent with prior announcements, other than that the company and Brace168’s vendors have negotiated a compromise whereby the warranties of the Brace168 vendors, which are subject to usual limitations and qualifications, are given severally by each vendor (and guaranteed by the relevant Brace168 principal).
Brace168 on track for strong growth
The Brace168 team has advised that it is on track to achieve strong year-on-year growth in recurring revenues while the sales pipeline continues to build
Key top ASX50 and ASX200 listed customers have agreed to renewals with upside from an expansion of services revenue.
Additional team members are being recruited for business development and customer success.
Expanding reach of Brace168
Cipherpoint has commenced the process of establishing an additional managed security service operation in Europe by leveraging its existing presence in Germany and capitalising on the strong desire for localised service providers in this market.
It plans to host its services within the scalable data centre space of Stackit, a member of the Schwarz Gruppe - one of Europe’s largest family-owned companies.
Following completion of the acquisition, CPT intends to expand the reach of Brace168 services.
Expanding partner programs
Brace168 continues to augment its core managed services by expanding its partner program through relationships with Checkpoint, Skybox Security and Micro Focus and reseller relationships with Cisco, Juniper and Meraki, to name a few.
Cipherpoint hopes to make further announcements regarding this expansion in the short term.
Key channel partners
The core existing Cipherpoint software business sales pipeline for both the cp.Protect and cp.Discover products continues to show potential, notwithstanding the continuing lockdowns in Europe and longer sales cycles.
Cipherpoint continues to progress discussions with key potential channel partners and will provide updates in due course.
Brace168
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 (including both ASX50 and ASX companies).