Sydney-headquartered security vendor Cipherpoint has bought local managed security services provider Brace168.
The deal — worth around $4.2 million — will give Cipherpoint access to Brace168’s security operations centre (SOC) platform as well as its government and enterprise customers.
According to Cipherpoint, Brace168’s key offering is its ability to manage multi-vendor customer environments within and across national boundaries through points of presence in data centres in Australia, the US and Europe.
Founded in 2017 by channel veteran Greg Bunt, Brace168 is based in North Sydney and provides a managed detection and response service. It currently remains unclear in what capacity Bunt will take at the new entity.
The company posted $1.2 million revenue at the end of financial year 2020 and now has hit $1.3 million in revenue for the end of this half year.
Cipherpoint will pay $3 million in cash and 21.75 million of its shares, which, at its current value of 0.056c, give a total price of $4.2 million.
An additional 14.2 million shares are to be issued on Brace168 achieving FY21 and FY22 financial milestones, Cipherpoint said.
The deal is expected to close early in March this year.
“We are excited about the prospect of joining Cipherpoint and its team at this critical stage of our growth journey,” Bunt said.
“In our opinion, Brace168 has the potential to set new standards in cyber security including providing managed detection and response services, security analytics and data protection. We remain committed to ensuring our customers are provided best in class service and support and to be the clear choice of supplier, partner and employer.”
The news follows Cipherpoint signing a global reseller agreement with US-based Nucleus Cyber Group as it focuses on supporting Microsoft collaboration platforms.
Under the agreement, the Sydney-headquartered Cipherpoint will resell the cyber security vendor’s NC Protect for an initial 12 months, with the option to roll-over for an extra 12 months.