Sydney IBM, Okta partner Decipher Works acquired for $5 million

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Sydney IBM, Okta partner Decipher Works acquired for $5 million

Cybersecurity specialist Decipher Works has been acquired for $5.1 million by ASX-listed Transaction Solutions International.

Electronic payments company Transaction Solutions was looking to expand its Australian footprint and was attracted by Decipher Works' list of glamour clients, which include Commonwealth Bank, National Australia Bank and the Queensland Treasury Corporation.

Some 65 percent of its customers are in banking and financial.

Decipher Works specialises in identity, access, governance and federation and partners with some of the world's top ID management vendors, including Okta, IBM, SailPoint and Quest. It turned over $3.4 million in 2017.

It was one of Australia's last remaining independent indentity management specialists – a sector that has been hot with acquisition activity.

Other deals in this space include Accenture's 2016 purchase of 130-staff Redcore, Deloitte acquisition of Qubit Consulting in 2015, and KPMG's deal to buy Brisbane-headquartered First Point Global the same year.

Perth-based Transaction Solutions, which is publicly traded as ASX:TSN, deploys ATMs on behalf of Indian banks through sister company TSI India.

The company agreed to buy 100 percent of Decipher Works for $3.2 million plus net working capital of $1.9 million, at a total of $5.1 million comprising of 61 percent cash and 39 percent TSN stock. The deal completed on 24 August.

Sydney-based Decipher Works is TSN’s first acquisition as part of its cybersecurity strategy that was unveiled in July, and it is currently reviewing other opportunities in that space.

“The acquisition is a strong fit with TSN’s strategy in cybersecurity, providing a solid foundation as a platform for large-scale growth,” a TSN spokesperson said.

“Acquiring [Decipher Works] should provide immediate value accretion for shareholders, as well as providing TSN with an excellent platform for growth, allowing for organic and inorganic opportunities,” said Jeffrey Lai, chief executive of TSN, told CRN. “This is a strong foundation for growth and is a great step in our cybersecurity strategy."

In a press release, TSN also noted that this acquisition should complement TSN’s existing interests in India. TSN’s sister company owns and operates ATMs in behalf of Indian banks.

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