Cipherpoint Ltd (ASX:CPT) has acquired 100% of Virtual Information Technology Pty Limited, a managed IT and security solutions company that services agencies of the Tasmanian Government and enterprise businesses.
Virtual’s clients include digital forensics, incident response services, identity protection, security companies and Citrix and Red Hat (NYSE:RHT) consulting.
CPT paid $750,000 in up-front cash and 10.2 million shares, representing approximately 2.9% of the current issued capital of CPT.
Up to a further $1 million of ordinary CPT shares are to be issued on achieving FY22 and FY23 financial milestones.
When the announcement of the acquisition was made in October, VIT founder Mark Hancock said of the complementary businesses, “In our opinion, together we have the potential to set new standards in cyber security including providing managed detection and response services, security analytics and data protection.
"The ability to leverage this capability to service our customers will allow us to continue to provide best in class service to our clients in the Tasmanian market.”
Read: Cipherpoint to acquire revenue generating cybersecurity outfit
Acquisition increases service offering
VIT will continue its unique focus on its Tasmanian market and in supporting existing and future clients to protect their businesses and operations.
Not only does the acquisition expand CPT’s footprint, but according to chairman Ted Pretty it also strengthens its best of breed solutions.
Pretty said, “The Cipherpoint team are delighted to welcome Mark Hitchcock and his team to Cipherpoint as we look to offer best of breed solutions to the business and enterprise market both locally and internationally.
“VIT Cyber Security team and its capabilities gives CPT the opportunity to leverage the group’s capabilities not only into the Tasmanian market, but also Victoria and South Australia.”