Story image

Connexion snaps up local IT service provider Security Shift

11 Jan 18

Melbourne-based smart car software specialist Connexion Media has entered into an exclusive binding Term Sheet to acquire 100% ownership of Security Shift Group (SSG).

SSG is an IT services company that provides cybersecurity, IT operations and cloud services, while also providing end-to-end solution design, build and development, deployment and operations services.

Connexion says SSG has a wealth of experience in designing, building and managing large-scale, complex web-facing systems, including designing and operating high profile national critical infrastructure assets.

SSG will be acquired by Connexion with no debts, 400,000 cash on hand and a current run rate Earnings Before Interest and Tax (EBIT) of $972,300 per annum.

Connexion says SSG is anticipated to increase its annual EBIT to $1.6 million within the next 12 months.

It says the net asset value of the acquisition (once completed and including earn-out) is $5 million.

Connexion executive director David Connolly says the acquisition marks the continuation of a strong 12-month period of transformation for the company.  

“With the inclusion of SSG we now have put together a financially sustainable and proven team,” Connolly says.

“We have had patient and supportive shareholders which the board thanks, and we are happy to be fully focussed with an elite team on execution and strong shareholder returns.”

On completion of the acquisition, SSG shareholders, Mr Chris Wright and Mr Mark Culhane will continue with the company and will assist in delivering on the existing technology platforms already in place.

Mr Wright will join the Connexion board as a director and Mr Culhane will be employed in the role as Chief Information Officer.

According to Connexion, the acquisition will provide them with the following benefits;

  • Balancing the revenue portfolio with its General Motors contract

  • Refurbishing the executive team with skills in delivery of large-scale technology projects

  • Acquiring two cloud platforms designed for Defence Signal Directorate PROTECTED level requirements, replacing reliance on external cloud computing services for major projects.

Connexion is expected to fully fund its acquisition of SSG through internal cash reserves, vendor scrip, debt finance and future earnings.

The deal is expected to be finalised no later than the 31st of March.

Hillstone CTO's 2019 security predictions
Hillstone Networks CTO Tim Liu shares what key developments could be expected in the areas of security compliance, cloud, security, AI and IoT.
Can it be trusted? Huawei’s founder speaks out
Ren Zhengfei spoke candidly in a recent media roundtable about security, 5G, his daughter’s detainment, the USA, and the West’s perception of Huawei.
Oracle Java Card update boosts security for IoT devices
"Java Card 3.1 is very significant to the Internet of Things, bringing interoperability, security and flexibility to a fast-growing market currently lacking high-security and flexible edge security solutions."
How SMBs can use data to drive business outcomes
With the right technology, companies can capture consumer, sales, and expense data, and use it to evaluate and construct future plans.
Survey shows that IoT is RoI across Asia Pacific
A recent Frost & Sullivan survey across Australia, Hong Kong and Singapore shows that IoT deployment improves business metrics by around 12%.
IDC: Aussie spending on IT Services to hit $23.5B by 2023
the project-oriented market which is predicted to achieve the highest CAGR through to 2023; though no market is expected to decline
Sophos hires ex-McAfee SVP Gavin Struther
After 16 years as the APAC senior vice president and president for McAfee, Struthers is now heading the APJ arm of Sophos.
Security platform provider Deep Instinct expands local presence
The company has made two A/NZ specific leadership hires and formed several partnerships with organisations in the region.