- archTIS (AR9) prepares to acquire the staff and European operations of a software division owned by fellow ASX-lister Cipherpoint (CPT) in a $1.4 million deal
- As part of the buy, AR9 would acquire intellectual property for “an advanced SharePoint data encryption solution” as well as a data discovery platform
- AR9 says the buy will assist in growing annual recurring revenues, which are currently estimated at $370,000
- AR9 will need to pay $1.4 million in cash with $200,000 of that amount held in escrow until certain contracts are updated
- archTIS shares were down 3.95 per cent to trade at 36.5 cents
archTIS (AR9) is set to acquire the staff and European operations of a software division owned by fellow ASX-lister Cipherpoint (CPT) in a $1.4 million deal.
The buy will include the intellectual property to protect what AR9 describes as an advanced SharePoint data encryption solution in addition to cp.Discover, a data discovery and classification platform.
AR9 claims the acquisition will provide a “growing suite of datacentric and zero trust architected platforms and products” and assist the Company to grow its annual recurring revenues.
As consideration for the buy, AR9 would pay $1.4 million in cash with $200,000 of that amount held in escrow until certain contracts have been updated.
AR9 may need to pay $1 million more based on total contract values assigned to archTIS as of March 21, 2022.
archTIS affirmed the acquisition represents “significant value” for shareholders, with the division reportedly bringing in some $370,000 in annual recurring revenue via current contracts.
archTIS Managing Director and Chief Executive Officer Daniel Lai said he was pleased to add Cipherpoint to the business.
“The acquisition clearly demonstrates our fiscal responsibility and our ability to consistently execute on what we have communicated to shareholders and the market around targeting acquisitive growth,” he said.
“We are capital efficient in how we price and evaluate deals and how we’re not afraid to look out of the box for this or other acquisitions.”
archTIS shares were down 3.95 per cent at 10:59 am AEST to trade at 36.5 cents.