ASX-listed PS&C Group has acquired Certitude, an IT governance and risk services company, for $2.1 million.
Based in Melbourne and with a presence in Sydney, Certitude boasts a stellar client line-up including BHP Billiton, Dimension Data Australia, Ernst & Young, Fair Work Australia and NBN Co, according to its website.
PS&C said the acquisition would be done in three staged payments with an initial payment of $2.1 million paid 50 percent in cash and 50 percent in PS&C shares as well as further payments till 2017 based on Certitude’s performance.
Certitude will enhance PS&C's ability to engage at higher levels of customer management as well as with customers earlier in the process of planning governance, risk and compliance strategies, according to a statement.
The acquisition also directly adds to PS&C’s growing governance offering, enabling security and risk program management and execution across the entire group.
PS&C managing director Kevin McLaine said: “We are delighted to have Certitude as part of PS&C. Certitude is a quality business with strong leadership. We are confident of the growth of the cyber security industry and see this acquisition as expanding our capability and enabling us to increase our offering of services to accommodate larger customers. The business allows us to interact with senior levels inside customers and to widen our offering.”
Melbourne-based PS&C was formed in 2013 through the roll-up of four IT providers, including infosec companies HackLabs and Securus. The company also purchased Sydney-based security firm Pure Hacking for $16 million in 2014.
In another statement to the ASX, PS&C warned that its half-year earnings before interest and tax (EBIT) for the period ended 31 December is likely to be 11 percent lower year-on-year – blaming corporate overheads.
“The comparative half in FY15 was particularly strong and represented more than 43 percent of full year EBIT, whereas management believes the norm to be a smaller percentage of full year EBIT."