Global managed security beTrusted announced yesterday that it intends to make a cash offer for all shares in ASX-listed managed security services provider, SecureNet.
Under the terms of the offer, SecureNet shareholders will receive $1.57 cash per share which capitalises SecureNet at around $110 million.
SecureNet said it was very happy with the price per share that beTrusted will be offering - $1.57 per share provides a 78 per cent premium to SecureNet’s closing share price of $0.88 per share on July 7.
SecureNet directors has unanimously recommended that all shareholders accept the offer unless a superior offer is lodged.
beTrusted’s offer stands so long as it can acquire a minimum 50.1 per cent of SecureNet shares. The offer is also subject to approval by the Australian Foreign Investment Review Board (FIRB) and, if required, approvals of SecureNet customers ASIO (Australian Security Intelligence Organisation), Defence Signals Directorate, National Office for the Information Economy, Australian Protective Services, Australian Government Solicitor’s Office, Department of Finance and Administration and Australian Security Vetting Service.
SecureNet managing director, Geoffrey Ross, said that none of these SecureNet customers had voiced concerns about their data being managed by a security company that was majority foreign-owned and that it was unlikely that their approval would be required.
“All those customers already deal with foreign-owned security companies," Ross said. "In the area that we’re in, if we’re part of a global group we can deliver a better solution to those customers. We’ll have a scale of operation that will let us provide additional services to those customers.”
beTrusted is a global managed security services provider that is owned by the private equity arm of US corporation Bank One.
Ross said SecureNet has had a close working relationship with beTrusted over the last three years.
“They were a customer of ours in Australia and were bidding our technology in UK government contracts," he said. "beTrusted are really the only other company in the world that has a really focused managed security business model like SecureNet.
"While they’ve been implementing that model in the US and Europe, we’ve been implementing it in Australia and Asia. So they approached us and said, ‘look, we can bring these businesses together and become the largest global managed security service business’.”