Accumuli plc Acquisition of Secmon Limited
Accumuli plc (AIM:ACM), the provider of Advanced IT Security Services announces that, in line with its stated strategy of building a Managed IT Security Services business, it has acquired the entire issued share capital of Edge7.
- Edge7 is a Security Information Event Management ("SIEM") consultancy selling hardware/ software licences and consultancy in a growing, specialised area of IT Security
- Initial consideration of £0.8m satisfied in cash
- Contingent consideration payable, subject to performance in the period to 30 September 2013, up to £3.0 million, two thirds payable in shares at 12 pence per share and one third in cash
- Provides a springboard into the SIEM market in line with the strategy articulated in the preliminary announcement of 22 May 2012
Nick Kingsbury, Non-Executive Chairman commented: "We are delighted to have completed our fourth acquisition since commencing the Accumuli buy and build project. Edge 7 is a business with a strong reputation, and acknowledged expertise in implementing and extracting the full benefits from a SIEM platform. This acquisition, along with our increased investment in this field, will enable us to provide our customers with a high level view on their organisation's IT security estate, and actionable intelligence on specific threats. It provides us with further depth in a skill set which allows us to engage at a higher, more strategic level with our customers and provide more cross selling opportunities across our customer base."
Edge7 is a SIEM consultancy business which sells SIEM consultancy services and hardware.
SIEM is the generic term used to describe the reporting, monitoring and management of security event correlation and is based on real time analysis of security and non-security device log information to identify IT security issues, threats and attacks. In simple terms, and based on the correct implementation, it provides C level executives with a "dashboard" view on their IT Security estate and provides them the tools to satisfy non-executives, regulators and other stakeholders that formal processes are in place to manage and mitigate IT security risk .
Edge7 was formed during early 2011 from former senior technical and sales individuals from the UK division of ArcSight Inc (sold to HP in 2010). It is recognised as one of the leading SIEM experts in the UK, and has also established a SIEM alliance with a number of other European SIEM experts (who provide services into major enterprise customers). Edge7 currently acts as a reseller for ArcSight, Splunk and Q1 Labs - all Gartner magic quadrant SIEM vendors.
It's business to date has covered product sales and consultancy to various blue chip organisations including Government, large European financial institutions, Service providers, Utilities and Financial PR. Due to the pervasive nature of the data utilised by SIEM products the consultancy and sales contacts are typically at senior management levels which provides an excellent opportunity to advise on a greater breadth of IT security matters.
In its first 13 months of trading to 30 April 2012 (unaudited) it generated revenue of £0.9m and gross margin of £0.4m and a reported loss before tax of £0.08m. The acquisition will allow the business to benefit from Accumuli's corporate structure and accordingly significant cost savings should be made.
The management of both businesses believe that there is significant scope for the products and services sold by Edge 7 to be cross sold across Accumuli's existing customer base. Additionally Edge 7 is increasingly seeing opportunities for Managed SIEM services, which previously would have had to be placed with a third party but which can now be fulfilled by the Accumuli group.