Shearwater Group PLC – Acquisition of cyber security testing business

Shearwater Group plc (AIM: SWG), the digital resilience group, has entered into a share purchase agreement to acquire certain business and assets of Secarma Limited, a leading provider of cyber security testing services and solutions. 

Highlights:

• Significantly strengthens the Group’s existing cyber security testing services with world-leading “red teaming” capability
• Provides for multiple cross selling opportunities across Group companies
• In line with stated strategy of building a leading UK-based digital resilience group
• Consideration of £7.4 million, payable £6.7 million in new ordinary shares and £0.7 million in unsecured loan notes
• Business to be rebranded Pentest

The Business’ first-generation cyber security testing services assess how attackers can exploit and penetrate weaknesses in operating systems, applications or services. In addition, the Business provides advance threat analytics and monitoring, and tailored “red teaming” operations through its highly experienced cyber security and ethical hacking specialists, which can simulate an attack on a customers’ network environment to test its ability to withstand an attack.   

Alongside this, the Business also offers customers cyber security consultancy solutions and training, and has its own proprietary cloud-based Platform-as-a-Service software, which is licenced to customers on a subscription basis to help integrate disparate IT Service Management platforms and ticketing systems. 

David Williams, Chairman of Shearwater, said:  

“Over the past year we have witnessed a substantial and growing demand for cyber security testing services and red teaming in particular. We’ve looked at a number of opportunities in this sector and we’re delighted to have secured a deal to purchase this business. 

“The incoming team’s industry expertise and considerable experience as well as market position will be very complementary to our services businesses and provides another key capability for the Group as a whole.”