Infotrust acquires Catalyst Cyber, plans no job cuts

The expertise of the Canberra-based security firm a key part of the $5 million deal according to Infotrust’s CEO.

Infotrust has announced that it is acquiring the business operations of Catalyst Cyber in a deal valued at approximately $5 million. While Catalyst Cyber is primarily Canberra based, due to its existing work with a number of Federal Government agencies, the deal will see staff from other Australian cities join the Infotrust fold.

The buyout deal will be finalised with around $3.5 million in cash and a further $1.5 million in Infotrust shares, based on a 5x multiple of Catalyst Cyber’s underlying EBIT.

The acquisition of a new business is often followed by a reduction in head count, but that’s not in the cards for Catalyst Cyber according to Infotrust managing director and CEO Julian Challingsworth.

He told CRN, “Everyone is staying on. Retaining Catalyst Cyber’s specialist, security‑cleared team was a key part of the acquisition.”

That team will add to Infotrust’s existing head count. According to Challingsworth they will acquire “20 experts with the majority in Canberra and presence across Adelaide, Brisbane, Melbourne and Sydney”, joining Infotrust’s existing head count of more than 200 cyber specialists.

The acquisition of Catalyst Cyber enhances Infotrust’s cyber security offerings with a specific focus towards procuring additional federal government cyber security work.

“Catalyst Cyber brings established agency relationships, security‑cleared personnel, and specialist accreditations, which provide immediate access to markets with high barriers to entry” Challingsworth said.

Challingsworth said the acquisition “accelerates Infotrust’s expansion into federal government markets, strengthens sovereign capability, and aligns with the company’s broader plan to scale recurring managed cyber security services across public and private sectors”.

“It also complements Infotrust’s existing managed security, 24x7 Security Operations Centre, data security, digital forensics and incident response capabilities, supporting the company’s strategy to deliver higher‑margin, recurring cyber security services” he stated.

Infotrust recently sold Nexgen Communications to Aussie Broadband, a $50 million deal that would cover the cost of the acquisition of Catalyst Cyber and leave plenty in the war chest for further expansion, but on that score Challingsworth is mostly staying quiet.

On the subject of any further acquisitions Challingsworth declined to state specifics to CRN, but noted that Infotrust’s strategy is “to build a scaled, sovereign, cyber‑first platform, and we’ll continue to assess opportunities that align with that focus.”

Challingsworth noted to CRN that the acquisition “follows a series of deliberate strategic actions by Infotrust to sharpen its focus on sovereign cyber security, including the divestment of its Cloud and Communications segment and the recent appointment of Chris Hatfield to lead its Forensic IT capability.”