LONDON, UK: Conduity Capital has entered into a non-binding heads of agreement to work towards the possible acquisition of Smarttech247, incorporated in the Republic of Ireland as Zefone Limited, for a total consideration of £33.5 million, to be satisfied by the issue of new ordinary shares in Conduity.

Smarttech247 is an established global artificial intelligence (AI) based cybersecurity business specialising in automated managed detection and response. Should such a transaction proceed on the currently envisaged terms, it would be classified as a reverse takeover in accordance with the AIM Rules for Companies.

The proposed acquisition remains subject to contract and satisfactory completion of the necessary due diligence and, at this stage, there is no guarantee that the Proposed Acquisition will complete.

Information on Smarttech247

Smarttech247 is an established company in automated managed detection and response cybersecurity – a managed security service that provides threat intelligence, threat hunting, security monitoring, incident analysis, and incident response with a significant AI overlay – with a successful track record of revenue growth and profitability and is positioned at the intersection of three major cybersecurity growth markets:

• Security threat incidents;

• Growth of cloud adoption amongst both large and small-medium enterprises; and

• Proliferation of cyber-security data generation that needs to be integrated.

Smarttech247 has over 100 technology partners, including Tanium and Crowdstrike, and 50 clients based in Europe and the US. Smarttech247 has contracts with enterprises that include the Institute of Cancer Research UK, Aryzta Global and the Royal College of Surgeons Ireland. 

On 23 June 2021, Smarttech247 also announced that it had been awarded a multi-year contract for managed cybersecurity services by a Fortune Global-1000 advanced manufacturing company, employing over 100,000 staff. Furthermore, Smarttech247 has just been awarded a purchase order under this contract to the value of €6 million for plant level operational technology cybersecurity services.

For the period ended 31 July 2020, Smarttech247 reported audited profits before taxation of €829,000, revenue of €4.8 million and had net assets of €712,084. These figures represent a significant increase compared to the previous year and the management of Smarttech247 believe that the current year to 31 July 2021 will demonstrate further substantial progress as they build on the stable of internally developed automated security products currently consisting of the successful ThreatTub (threat and vulnerability modelling and management) and NoPhish (an AI driven phishing response solution to threat emails). www.smarttech247.com. 

Information on the cybersecurity industry

There is currently a high level of cyber security threat incidents which is creating a need for new and better security products and services. Furthermore, cloud migration means that companies need to redesign their existing systems which is generating new cybersecurity requirements.

Cybersecurity applications are also being re-engineered to include cybersecurity reporting which is increasing the generation of cybersecurity data. A shortage of qualified specialist skills and associated cost is leading companies to adopt external automated cyber-security platforms. These trends are creating increasing demand for AI based cloud cybersecurity platforms which can be provided by Smarttech247. Fortune Business Insights currently value the cybersecurity market at US$153 billion, which is growing at 12% per annum and therefore projected to be worth US$366 billion by 2028.