Cipherpoint sells its software and European businesses to ArchTIS – Security – Services

Sydney cybersecurity provider Cipherpoint has sold its software division to Canberra-based security software provider ArchTIS for $1.4 million.

As part of the agreement, ArchTIS also acquired Cipherpoint’s European operations, including its office in Germany, existing contracts, sales and development personnel, and intellectual property for its software products, cp.Protect and cp .Discover. cp.Protect is an on-premises SharePoint data encryption solution, while cp.Discover is a data discovery and classification platform.

Cipherpoint said the move would focus on managed security services after its acquisition of Sydney-based Brace168 in January this year. The company will also resell cp.Protect and cp.Discover as part of its service offering.

“This transaction is convincing. Following the sale, Cipherpoint’s annual operating costs will be reduced by approximately $1,060,000 with a very modest impact on revenue. This significantly strengthens our cash position,” said Cipherpoint President Ted Pretty.

“Cipherpoint will now focus on its managed security services business, including Brace168. Cash from the sale will be deployed to drive growth in our managed services business, both organically and through potential acquisitions. »

Cipherpoint COO Steven Bliim will join ArchTIS as Vice President – Business Development for EMEA, while Ted Pretty will transition to Chief Executive Officer while remaining Chairman of the Board.

ArchTIS said the acquisition complements its NC Protect software, adding discovery and data encryption technologies. The company is also expected to generate $370,000 in annual recurring revenue for ongoing contracts.

The $1.4 million award also comes with additional consideration of up to $1 million payable based on the total value of contracts awarded to ArchTIS as of March 31, 2022.

ArchTIS COO Kurt Mueffelmann said, “We have worked with the Cipherpoint software team for some time under our existing mutual reseller agreements. Buying assets is a logical next step in the relationship.

“The complementary acquisition represents excellent value for ArchTIS shareholders with the delivery of many long-standing and high profile customers and partners, as well as expanding markets in Europe and Singapore.

“In particular, the asset purchases will provide ArchTIS with a unique data discovery and classification technology that is complementary to NC Protect and can be used cross-functionally with our existing technology stack. Additionally, Cipherpoint’s industry-ready staff will seamlessly integrate into our active offices in Europe and America and bolster our sales efforts in these markets.

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