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Major Australian cloud and cyber security provider AUCloud has announced that it’s set to acquire a trio of Aussie IT organisations.
The ASX-listed Australian firm announced in a statement yesterday (18 March) that it had entered into binding agreements to acquire three businesses – PCG Cyber, Venn IT, and Arado.
To fund the acquisition, AUCloud is “undertaking an accelerated renounceable entitlement offer of up to $30 million, underwritten to $25 million to fund the cash consideration under the acquisitions and transaction costs,” according to a company press release.
“The balance of the net proceeds will be used towards funding working capital requirements.”
PCG Cyber is a Canberra-based consulting firm that specialises in advising the Australian government and large private industry organisations on security and operations, engaging in penetration testing, threat monitoring and management, and cyber security assessments and awareness training.
Venn IT, based in Queensland and South Australia, is also a data resilience and security consulting business, but it specialises in dealing with other large industries such as financial services, distribution, education, and mining.
Finally, Arado is a Queensland-based cloud and managed services suite with customers in both state and local governments in areas such as health and resources, agriculture and industrial sectors.
As said by AUCloud chief executive Peter Maloney, all three organisations have missions and specialties that bolster the company’s already award-winning operations, strengthening its approach to secure cloud solutions and cyber security.
“The announcement of the acquisitions marked a significant step in our commitment to enhancing our comprehensive suite of cyber security and secure cloud solutions for our customers and positioned the company on a transformational growth trajectory,” said Maloney.
“This expansion not only broadens AUCloud’s product, revenue and geographic spread but also integrates the unique technologies, skills and expertise of highly skilled providers into our operations.
“The move is set to enhance AUCloud’s ability to deliver end-to-end cyber security, secure cloud solutions and consulting services to cater to the growing needs of Australian organisations and governments.
“This expansion executes on the strategic review announced in June 2023 to build, partner and acquire new capabilities in cyber security and partner in the multi-cloud and public cloud markets to leverage the capital invested in the existing four sovereign cloud platforms.
“The strategically aligned acquisitions refocus AUCloud as a capital-light, diversified cyber security and cloud solution offering with a national footprint.”
AUCloud said it intends to continue engaging in merger and acquisition activity to scale up its capabilities.
AUCloud forecasts that it will achieve an FY25F underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately $4.7 million on FY25F revenue of $36.6 million, transitioning to positive monthly operating cash flow in the first half of the 2025 financial year.
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