PS&C Group has purchased Sydney security firm Pure Hacking in a deal that could total around $16 million and is also looking for other acquisitions.
In addition to an initial $8.3 million cash and share deal, PS&C will pay 5.5 times 2015 financial earnings before interest and tax, minus the $8.3 million.
With Pure Hacking expected to add $2.5 million to $3 million in earnings before interest and tax to PS&C, the overall payment could reach up to approximately $16 million.
There will also be an additional earn-out payment for the 2016 financial year.
Sydney-based Pure Hacking is a former BRW Fast Starters Top 100 entrant, and has more than 400 customers. The company was started in 2002 by former IBM Global Services Austral program manager Rob McAdam.
The acquisition adds to an existing PS&C security porfolio that already includes Securus and Hacklabs. The companies joined with Allcom Networks and Systems & People to form PS&C last year, which then floated in December last year.
Today's acquisition may not be the last for PS&C. The reseller group is "focused on attractive acquisition opportunities" in the security space, citing high growth and high margin in the sector. There is opportunity to create a 'high franchise value business" leading to increased traction with larger customers, according to today's announcement.