Cyber Security 1 AB (Publ) (Nasdaq First North: CYB1), has signed an exclusive non-binding letter of intent to acquire the operations Cyber Security South Africa and Cyber Security Africa Distribution. A due diligence process will be initiated before a potential acquisition. As of June 30, the two companies had a combined turnover of around EUR 7 million at a rolling annual rate.
The companies are engaged in providing cyber resilience solutions. Cyber Security South Africa has operations and headquarters in South Africa, while Cyber Security Africa Distribution has operations in Ghana, Kenya, Nigeria, Morocco, Egypt and Mauritius and is headquartered in Mauritius. Both companies are value-add distributors with focus on mitigation of information security risks for its clients, through generally complex and relevant security solutions from globally recognised international vendors. The products and services are predominantly aimed at enterprise and mid-market clients. The purchase price consideration and final structure of the transaction is subject to a satisfying due diligence outcome, with the purchase consideration proposed to be distributed in equal parts of cash and Cyber Security 1 shares. The due diligence process is estimated to take about 8 weeks and the exclusivity applies throughout this period. “By acquiring Cyber Security South Africa and Cyber Security Africa Distribution, we get a strong base for continued growth and can generate synergies in our business. The companies’ operations are similar to each other and would be a great strategic fit for the Group. I am convinced that an acquisition would be positive for both employees within the companies and for our customers “, says Peter Gustafsson, CEO of Cyber Security 1. “Following discussions around the strategy and vision with the Board of Cyber Security 1, we believe that an acquisition of this nature would bring great value to the businesses and help realise some exponential growth in the industry”, says Robert Brown founder and CEO of Cyber Security South Africa and Cyber Security Africa Distribution.
For further information, please contact:
Investor Relations Contact:
Tim Metcalfe / Zach Cohen CYBER1
Direct contact or general matters relating to CYBER1 please contact:
Phone: +46 (0)70 510 10 22
Mangold Fondkommission AB is the Company’s Certified Adviser.
CYBER1 is engaged in providing cyber resilience solutions and conducts its operations through physical presences in UK, Sweden, Kenya, South Africa, United Arab Emirates and the United States. Listed on Nasdaq First North Growth Market (Nasdaq: CYB1.ST), the Group delivers services and technology licenses to enhance clients’ protections against unwanted intrusions, to provide and enhance cyber resilience and to prevent various forms of information theft. CYBER1 had revenues of 68.73m EUR in 2019.
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This information is information that Cyber Security 1 is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2020-08-27 19:20 CEST.