BigAir Group has acquired managed services security solutions provider, CyberHound, in a $7 million deal, extending its cybersecurity play in the process.
Effective July 1, BigAir said the acquisition is "consistent" with its plan to improve its offering to the mid-market, with CyberHound providing offerings to the education industry, alongside 550 business customers.
BigAir CEO, Jason Ashton, said the acquisition will bring new technology into the business as well as an established customer base.
“This acquisition not only gives us a significant edge in our existing business and education markets - it significantly expands BigAir’s addressable market,” he said.
CyberHound CEO, John Fison, said customers will benefit from the additional scale provided by BigAir and the resultant ability to bundle additional services such as high speed data links, Internet, IaaS and other Cloud-based services.
“We can also leverage BigAir’s enhanced 24x7 managed services desk," he explained. "Their national presence, coupled with their Network Operations Centre will enhance our professional managed services capabilities."
According to a company statement, the purchase will be made through a combination of new equity and cash, with the purchase price capped at no more than $7 million which is comprised of up to $4 million in cash and up to $3 million in BGL shares.
In FY17, CyberHound is expected to generate revenues of between $5 million and $6 million and Net Profit before Tax (NPBT) in excess of $1 million - the acquisition is expected to be immediately EPS accretive.