Sydney cybersecurity provider Cipherpoint has completed its $1 million acquisition of Hobart-based managed security services provider VIT Cyber Security (Virtual Information Technology Pty Ltd).
Founded in 2016, VIT Cyber Security provides security solutions to agencies of the Tasmanian Government and enterprise businesses. Some services it provides include digital forensics and incident response, identity protection and security, and Citrix and Red Hat consulting, a statement from the company read.
The sale includes a payment of $750,000 cash and 10.2 million shares (worth $306,000) upfront totalling just over $1 million, with a further $1 million of shares to be meted out based on the subsidiaries performance. $500,000 for reaching $900,000 revenue in FY22 and the rest for reaching $1.25 million revenue in FY23.
"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. The 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," Cipherpoint chairman Ted Pretty said.
VIT Cyber Security founder Mark Hitchcock said, "I am delighted we are joining the team at Cipherpoint and to work alongside its wholly owned subsidiary Brace 168. VIT Cyber Security will continue its unique focus on its Tasmanian market supporting our existing and future clients in protecting their businesses and operations."
Cipherpoint also acquired Sydney-based managed security services provider Brace168 at the start of the year for $3 million to bolster its security offering and help the company compete more aggressively in the market.
Just last month, sold its software division to Canberra-based security software vendor ArchTIS for $1.4 million, which included Cipherpoint’s European operations encompassing its office in Germany, existing contracts, sales and development staff and the intellectual property to its software products, cp.Protect and cp.Discover.