Melbourne-based network encryption vendor, Senetas (ASX:SEN), has acquired its UK-based reseller, Focus, for more than $500,000.
The acquisition was part of Senetas’ efforts to expand overseas. Focus will come under the Senetas Europe branding as of July 5.
The company consists of three staff and all will be kept on-board. Gareth Jones will take on the general manager position, Pete Smith is the manager of encryption solutions and Graham Wallace as the Government accounts manager and product specialist.
Investor relations consultant, Greg Dearden, said it was spending a modest amount to expand overseas. “This will hopefully be the first of similarly structured acquisitions in the future in other parts of Europe and North America,” Dearden said. “A large degree of our market capital is backed up by cash.
“We have followed a conservative policy by building up our cash bank and getting to know our resellers very well.”
Senetas CFO, Andrew Wilson, said it Europe was a significant market for the company’s products.
“It’s an exciting move for us. We’re embarking on security accreditation for staff, which will open up the Government and defence markets in the UK for us.”
Wilson said it wasn’t actively looking for further acquisitions at this point in time, but didn’t dismiss it if the right opportunity arises.
The European arm will offer Software-as-a-Solution (SaaS) called Senetas MonitorStream that offers encryption-secured, automated monitoring in real-time.
Senetas recently lost a consulting contract with Telstra. The telco opted for an Indian-based company.