BigAir Group Limited (‘BigAir’, ASX:BGL) has completed the acquisition of all the shares in CyberHound Pty Ltd (“CyberHound”), an innovative managed security services provider, effective 1 July 2016.
BigAir will acquire CyberHound using a combination of new equity and cash. The total purchase price will be capped at no more than $7 million which is comprised of up to $4 million in cash and up to $3 million in BGL shares.
In FY17 CyberHound is expected to generate revenues of between $5 million and $6 million and Net Profit before Tax (NPBT) in excess of $1m and the acquisition is expected to be immediately EPS accretive.
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CyberHound provides a fully managed security solution to the business market and is the leading provider of Cybersafety and digital learning enablement services to the education sector in Australia, currently supporting more than 350 schools.
In addition, CyberHound provides managed cybersecurity services to more than 550 businesses.
BigAir Sees Growing Demand for Internet Security Services
In a disclosure to the Australian stock exchange, BigAir said there is growing opportunity in the demand for Internet security services and this acquisition is consistent with BigAir’s strategy to offer complementary solutions to its mid-market enterprise customer base.
“This synergistic and accretive acquisition provides us with new technology and an established customer base that will unlock new opportunities for BigAir and strengthen our cybersecurity and cybersafety capabilities. This acquisition not only gives us a significant edge in our existing business and education markets – it significantly expands BigAir’s addressable market,” said BigAir CEO Jason Ashton.
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John Fison, CEO of CyberHound, said customers will benefit from the additional scale provided by the BigAir Group and CyberHound’s ability to bundle additional services such as high speed data links, Internet, IaaS and other Cloud-based services.
“We can also leverage BigAir’s enhanced 24×7 managed services desk. Their national presence, coupled with their Network Operations Centre will enhance our professional managed services capabilities. We are pleased to be able to offer BigAir’s customers our innovative cybersecurity and cybersafety solutions and I am excited our team can join such a successful and professionally run organization,” Fison added. – BusinessNewsAsia.com