LONDON, UK: SailPoint Technologies UK Ltd has reached an agreement to acquire Osirium Technologies plc at the rate of 2.35 pence/share in cash.
It is intended that the acquisition will be implemented by way of a court-sanctioned scheme of arrangement. The acquisition values Osirium’s entire issued, and to be issued, ordinary share capital at approximately £3.11 million on a fully diluted basis and implies an enterprise value of approximately £6.56 million.
The Osirium Directors, who have been so advised by Allenby as to the financial terms of the acquisition, consider the terms to be fair and reasonable.
SailPoint Technologies believes that there is a significant opportunity within the growing identity security market. Cloud-oriented enterprises around the globe are showing increasing demand for innovative and trusted solutions to address their identity security challenges.
In order to rise to this market opportunity, constant innovation, delivered both organically and by acquisition, is required across product portfolios to meet the world’s evolving identity security needs.
SailPoint has a track record of successfully making and integrating selective strategic acquisitions of businesses with complementary products and solutions.
Osirium’s strong technology proposition and traction with customers in attractive markets makes Osirium an excellent fit for the SailPoint Identity Security Platform.
SailPoint believes that the addition and integration of Osirium’s core capabilities into SailPoint’s existing Identity Security Platform will facilitate the development of Osirium’s offering whilst providing a compelling unified platform for securing privileged and non-privileged identities to the Combined Group’s customers and prospects.
Since its admission to AIM in 2016, Osirium has made significant progress in building an established, loyal client base whilst continuing to invest in its cybersecurity solutions.
Notwithstanding this significant progress, Osirium has remained dependant on the ability to access equity capital to fund working capital. As at 30 June 2023, Osirium’s unaudited cash balance was £0.22 million.
Cash levels continue to be carefully managed and despite the positive trading momentum in the first half of the year, the Osirium Directors anticipate that Osirium will be required to raise additional capital before the end of 2023, as well as implementing additional cost saving measures.
Commenting on this announcement, David Guyatt, the Chair of Osirium, said: “As a regional UK privileged access management vendor founded in 2008 and listed on AIM in 2016, despite innovative and customer recognised solutions, Osirium has been challenged in achieving the critical mass necessary to compete with the other large and well-established PAM vendors. The Acquisition will provide the scale, recognition and resources that will enable the full potential of Osirium’s world class PAM, EPM and PPA solutions.
Further, I believe that the Acquisition fairly recognises the medium-term prospects and growth potential of Osirium as a standalone business and provides Osirium Shareholders with an immediate and certain value in cash.”
Mark McClain, the CEO of SailPoint, said: “We are pleased to have reached agreement with the Board of Osirium on the terms of Bidco’s proposed Acquisition of Osirium. The Acquisition will bring Osirium’s core capabilities into SailPoint’s existing Identity Security platform providing a compelling unified platform for securing privileged and non-privileged identities for our customers. We look forward to completing the Acquisition and working with the Osirium team.”