SYDNEY, AUSTRALIA: Cipherpoint Limited (CPT) has entered into a binding term sheet to acquire 100% of the issued capital in cyber security services business Virtual Information Technology Pty Limited (VIT Cyber Security).
VIT Cyber Security was established in 2016, by its founder Mark Hitchcock, to provide managed IT and security solutions and services to agencies of the Tasmanian Government and enterprise businesses including digital forensics and incident response services, provision of Identity Protection solutions and security, Citrix and Red Hat Consulting.
VIT Cyber Security’s FY21 revenues were A$703,000 and, under the terms of the proposed transaction, the parties have agreed to the issue of milestone shares subject to achievement of revenue targets for FY22 and FY23 which are set out below.
The consideration for the acquisition of 100% of the issued capital of VIT Cyber Security from the shareholder of VIT Cyber Security (VIT Vendor) is a mix of cash and CPT securities, initially being $750,000 cash and 10.2 million shares. Up to a further $1.0 million of ordinary CPT shares are to be issued on achieving FY22 and FY23 financial milestones.
CPT is seeking to complete the transaction by 31 October 2021 or shortly thereafter.
CPT Executive Chairman Ted Pretty said: “The Cipherpoint team are excited that VIT Cyber Security will be joining us on the journey to offer best of breed solutions to the business and enterprise market both locally and internationally. Our focus is to acquire a business complementary to the Brace168 business operating in different markets and adjacencies which can leverage the skills and capabilities of the Brace168 team.
VIT Cyber Security gives CPT the opportunity to leverage their capabilities into the Tasmanian market. It will enable us to continue to scale with an integrated offering and build on its increasing momentum in the cyber security market.”
Cipherpoint through its wholly owned subsidiary Brace168 Pty Limited is a focused managed cyber security services business. www.cipherpoint.com
VIT Cyber Security provides a range of cyber security services to its customers including digital forensics and incident response services, provision of Identity Protection solutions and a range of consulting services including security, Citrix and Red Hat Consulting. www.vitcs.com.au