SYDNEY, AUSTRALIA: Cipherpoint Limited (ASX: CPT) has entered into a binding but conditional agreement to acquire all of the issued capital and business of Sydney headquartered Excite IT Pty Limited.
The acquisition price will be structured as a combination of cash and scrip and is up to $3.25m in aggregate consisting of upfront, deferred and performance based earn out elements.
Excite IT is a leading focused provider of managed IT and security services, cloud solutions and automation. Founded by Bryan Saba Excite IT optimises information technology platforms and processes for its enterprise customers and implements appropriate cyber security solutions to protect their businesses and the information of their customers.
Excite IT customer include market leaders in the property, logistics, biscuit and snack food industries. Excite IT achieved revenues in excess of ~$3 million in FY22.
Excite IT will extend Cipherpoint’s capabilities to be able to offer a range of managed Security, IT and Cloud solutions. Excite IT is an existing channel partner to Cipherpoint’s subsidiary Brace168.
Excite IT founder Bryan Saba said: “I am delighted that Excite IT will be joining the Cipherpoint teams. We have had a strategic relationship with Cipherpoint subsidiary Brace168 for some time. I am particularly pleased we will be extending this capability to deliver a broader range of cyber services to our clients.”
Cipherpoint Chairman Ted Pretty said: “This acquisition continues CPT’s momentum as a cyber and cloud services business. We are delighted that Bryan will lead our efforts to grow that business. It is our intention to actively cross-sell the unique capabilities of both Excite IT, Brace168 and VITCS. CPT will support Excite IT as it continues to focus on growth in FY23.”
Subject to completion Excite IT Founder Bryan Saba will join the CPT leadership team as Managing Director and CEO of the CPT Group and will remain CEO of Excite IT.
It is proposed that Mr Saba will be paid a market-based salary, have the right to be issued further shares conditional on short term operating hurdles and be issued with performance rights referrable to long term CPT group targets. The transaction, including the issue of any incentive shares and rights, are subject to shareholder approval and further details will be set out in a forthcoming notice of meeting