SYDNEY, AUSTRALIA: RightCrowd Limited, an Australian software company that provides identity, security and compliance solutions, has announced that it has signed a conditional agreement to sell its physical security-related businesses to Bloom, a New York based technology investment firm, for $13.5 million.
The businesses being sold include the Workforce Access, Visitor Management and Presence Control product lines, which provide physical access control and visitor management solutions to large enterprises and government agencies. The sale is subject to shareholder approval and other customary conditions.
RightCrowd said that the sale will allow it to focus on the rapidly growing global identity governance and cyber security markets and accelerate its earlier stage, SaaS-based, Access Analytics business, which provides identity risk and compliance analytics solutions. Bloom will be appointed an Access Analytics OEM partner for physical security uses.
The RightCrowd Board said that it decided to prioritise the allocation of capital to the growth of the Access Analytics business after conducting a thorough review of the company’s operations and the significant change in investment market conditions over the last 18 months. The Board said that the sale price of $13.5 million was a significant premium to the company’s current market capitalisation.
The leadership group and staff of the physical security-related businesses will remain with the businesses being acquired by Bloom. The existing Access Analytics team will remain with the listed entity led by RightCrowd CEO, Peter Hill and CFO, Leslie Milne.
RightCrowd CEO Peter Hill said that he was extremely proud of the achievements of the physical security-related businesses and the innovation required to deploy them in globally significant enterprises. He said that he believed that the decision was in the best interests of all stakeholders and that he was committed to lead the listed company to commercialise Access Analytics in the faster-moving, identity and cyber security markets.
Bloom Equity Partner’s Managing Partner, Bart Macdonald, said that he was excited to acquire RightCrowd’s physical security solutions and commit to continued investment in technology R&D and delivering world-class service to RightCrowd’s global customers. He also said that he looked forward to establishing the OEM partnership with RightCrowd to grow the Access Analytics product in the physical security segment.