This article from two days ago is clearly saying that the major cyber security players in Australia are currently growing by making strategic acquisitions or by mergers. Note in particular that CyberCX is credited with making 17 acquisitions since 2019 (or about 50% more than TNT). Tesserent gets a mention too at the end. The biggest players are mopping up the smaller players, and TNT needs to do the same to remain in the game. Hopefully we will get news of the latest couple of TNT acquisitions before too much longer.

https://www.copyright link/street-talk/new-cyber-consultancy-sekuro-assembles-ipo-team-20211022-p592e9
w w w . a f r . c o m /

New cyber consultancy Sekuro assembles IPO team

Oct 24, 2021 – 9.32pm
New cyber security consultancy Sekuro, formed through the merger of Privasec, Solista, CXO Security and Navir, is one of the first companies to get its ducks in a row and appoint a team of advisors ahead of a planned 2022 float on the ASX.

The combined company, which has a workforce of around 90 and annual revenue of about $68 million, has tapped Terrain Capital and Empresio as its corporate advisors, while Pointon Partners is on board to provide legal advice and RSM for auditing.

Industry experts suggested a company of its size could attract up to a two times revenue multiple, if it’s also recording solid growth, and 1.5 times revenue is considered extremely achievable.

CXO Security boss Robert McAdam is the CEO of Sekuro, while the heads of all four cyber security firms have stayed on in with the newly formed company.

The decision to merge the companies was made to enable them to compete for larger deals with customers tackling complex digital transformation programs, which previously were unreachable for the individual businesses.

Sekuro hopes to take on the cyber security practices of the big four consulting firms, as well as operators like Ankura and CyberCX.

The company remains founder-owned, with the shares divided based on earnings contributed by each merged business.

The merger of the four companies brings back plenty of memories of BGH Capital-backed roll-up CyberCX, which was launched by Alistair MacGibbon and John Paitaridis in 2019.

Having made at least 17 acquisitions, CyberCX has acquired its way to becoming a dominant player in the local industry.

ASX-listed cyber security provider Tesserent has also flagged its intention to make acquisitions, having raised $20 million in September to fund future purchases.

All IMHO, DYOR