ASX-listed managed security services provider eSec has placed a bid to acquire Intelligent Technology Linux and its subsidiary Software Vision Consultants (SVC) for $685,000.
The combined cash and stock purchase of the Melbourne-based business will see eSec pick up around 11 staff who have security expertise in systems integration, sales and maintenance of third-party technology.
The move follows eSec's strategy of consolidating the managed security services market, according to Saxon Hill, eSec's CEO. Hill said there are too many embryonic players in the market -- with each setting up its own network operations centre -- for any one company to leverage an infrastructure big enough to derive value out of managed security services.
By consolidating smaller companies and absorbing their infrastructure through acquisition, Hill believes eSec will be able to "unlock" the value from what is really an "early days" sector of the IT services market. eSec achieved a break-even operating cash-flow in the September 2001 quarter. Hill claimed the company is on track to become a profitable business.