Rhipe has acquired 100 percent of security distie EMT Distribution for $11 million upfront for the Australia and Asia based operations, with a further payment of up to $2 million based on financial performance after 24 months.
Completion of the acquisition of EMT’s Middle East based operations is expected at the start of next financial year with terms to be disclosed post-audit.
Rhipe chief executive Dominic O’Hanlon said, “EMT Distribution has an incredible track record in delivering software security products and solutions via their distribution channels. By combining EMT’s expertise in security solutions with Rhipe’s reach, we will be able to offer Rhipe partners across APAC effective solutions to protect against growing threats around cybersecurity.
“We plan to continue investing in the EMT business to support its continued growth, delivering EMT’s extensive portfolio of vendor security products to Rhipe partners, while providing EMT partners with access to SmartEncrypt and Rhipe security vendor products. We look forward to welcoming the EMT team to the Rhipe family and leveraging their outstanding skills and expertise, to deliver greater outcomes for our partners and their customers.”
EMT was founded in 1988 and has a portfolio of over 15 security vendors. The purchase includes EMT’s products, solutions and assets.
EMT founder and chief executive Richard Rundle will continue to lead the EMT business within Rhipe as well as supporting the expansion of Rhipe’s security offering to its existing partners.
EMT’s 21 employees from its Australian-based and Asia offices will also join the Rhipe family, with the Middle East operations likely to join Rhipe in the coming months.
EMT founder and chief executive Richard Rundle said, “As we enter our next stage of growth, we are thrilled to be joining the Rhipe family to collectively execute on the opportunities ahead. I could not be prouder of our team’s success to date and believe this is a significant opportunity to align with a distributor of Rhipe’s calibre, to greatly enhance our capabilities and market reach.”
According to an ASX announcement, EMT Australia and Asia had sales of $19 million and delivered an underlying EBITDA of $1.9 million in the 12 months prior to the acquisition.