COGNOSEC acquires 100% of the issued share capital of A-TEK – 12th June 2017
A-TEK is EBITDA positive with extensive cyber-specific distribution expertise
Consideration €275,000 comprised €44,000 cash & €231,000 COGS shares at €0.25 strike price
Cognosec AB (publ) (“Cognosec” or “The Company”), (Nasdaq: COGS), a leading supplier of cyber security solutions with operations in Europe, Africa and the Middle East, has completed its acquisition of UK-based A-TEK DISTRIBUTION LIMITED. The acquisition is in line with Cognosec’s strategy to expand business areas to cover the sale and distribution of software technologies over the internet.
Cognosec AB today announces the completion of the acquisition of A-TEK DISTRIBUTION pursuant to previous directives and as at 12th June 2017, the acquisition of 100% of the issued share capital of A-TEK. A-TEK DISTRIBUTION is a UK registered company with offices in Manchester and Johannesburg. The transaction has completed by Cognosec AB and will be injected into subsidiary, Credence Security.
A-TEK DISTRIBUTION is a specialist Digital Software Distribution Business, speciailising in cyber solutions by portal and established by pioneers of digital software distribution. The business is positioned as a New Age Distribution Business, enabling global access to the vast Enterprise & SME markets with Pay-as-you-Use and Software-as-a-Service cyber-specific solutions. The technology platform provides significant scalability and global advantages through innovative distribution methodologies.
A-TEK DISTRIBUTION recorded revenues of over £88,000 in FY2016 and EBITDA of £42,000.
The acquisition of A-TEK improves Cognosec’s competitive advantage for both vendors and customers alike. This addition also expands Credence Security’s current product portfolio to incorporate cyber security solutions for secure operation centers, network operation centers, datacenters, mobile platforms, virtualized environments as well as providing critical fraud prevention solutions into the technology, media, telecommunications, financial and public sectors.
Commenting on the acquisition of the business by Cognosec AB, Simon Campbell- Young, A-TEK’s Co-founder & CEO, says that – “This will provide us with the traction that is required in this heavily fragmented market, to move quickly and expeditiously towards solving our communities’ needs with rapid supply solutions to ever increasing demands, internationally.”
Patrick Boylan, Group MD of Cognosec AB commented – “The acquisition of A-TEK gives us the further strength and security of building upon man-years within the cyber industries from a hugely persified group of existing and potential vendor offerings.”
The transaction included the acquisition of 100% of outstanding shares for a consideration of approximately €275,000 comprised of €44,000 cash and €231,000 Cognosec AB new issue shares at €0.25 strike-price. The acquisition has been funded from internal resources. No external debt has been required to complete this transaction. There will be no other impact on Cognosec AB’s balance sheet.