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Australian cyber security company archTIS has acquired the European operations of Cipherpoint’s software division, the company confirmed.
The recent acquisition is expected to enhance archTIS’s core offering by expanding on the number of data centric and zero trust platforms offered by the company. The expanded offering expects to support Microsoft customer environments whether on the cloud or on premises.
According to a release from the company, the recent acquisition includes the intellectual property to cp.Protect and cp.Discover, that provide SharePoint on-premises data encryption and data discovery, respectively.
The acquisition is expected to enhance and diversify the company’s ongoing international revenue stream.
"The acquisition clearly demonstrates our fiscal responsibility and our ability to consistently execute on what we have communicated to shareholders and the market around targeting acquisitive growth," archTIS chief executive Daniel Lai said.
The current customer base of the cp.Protect and cp.Discover offerings include DHL, Bank of Finland, California State University, Arthur J Gallagher, the US Defense Advanced Research Projects Agency (DARPA), Singapore Power, Singapore Tote and Acronym Media.
NTT Data, the authorised reseller of Cipherpoint technologies, will continue to sell the products in Germany, Austria, Switzerland and Singapore.
Kurt Mueffelmann, archTIS global chief executive and president of the US region, welcomed the announcement.
“We have worked with the Cipherpoint software team for some time through our existing mutual reseller arrangements. The asset purchase is a logical next step in the relationship,” Mueffelmann said.
“The bolt-on acquisition represents excellent value for archTIS shareholders (~3.8x current annual recurring revenue) with the delivery of many long-serving, high profile customers and partners, as well as extending markets in Europe and Singapore.
“In particular, the asset purchases will provide archTIS with unique data discovery and classification technology that are complementary to NC Protect and can be cross-utilised with our existing technology stack. Moreover, the industry-ready Cipherpoint staff will slot readily into our active EU/America offices and bolster our sales efforts in these markets.”
According to a statement from the company, “The purchase price consists of $1.4 million in cash with $200,000 of the initial purchase price held in escrow until the novation of certain contracts. In addition, further consideration of up to $1 million is to be paid based on total contract values of contracts assigned to archTIS as of 31 March 2022.”
[Related: Cyber security firm archTIS announces record breaking quarter]
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