Plurilock Security (PLUR.V), a Canadian company focused on the provision of leading-edge identity-centric cybersecurity technologies for the modern workplace, announced today that it had completed the acquisition of CloudCodes Software Private, an award-winning cloud access security broker.
CloudCodes, based in India, serves a global customer base providing best-in-class novel cloud security SaaS enterprise solutions for protecting email and group collaboration platforms.
The purchase is a cash and shares deal for an aggregate consideration of approximately $1.45 million USD which includes $700,000 cash payable on closing, a promissory note of $300,000 maturing on November 15, 2022 and 992,755 common shares in Plurilock at $0.59 CAD per share.
The newly acquired company provides a wide range of cybersecurity products including single-sign-on, multifactor authentication and cloud data loss prevention solutions.
For its year ended March 31, 2022, CloudCodes generated approximately $572,000 in product revenue.
The acquisition gives Plurilock the ability to expand its product portfolio, as it intends to provide CloudCodes’ CASB solution as an early access product named Plurilock Cloud.
Cloud is expected to initially integrate with and later absorb, its existing Plurilock Adapt login authentication product.
The deal will also benefit CloudCodes by giving it access to Plurilock’s financial resources, deep security, information technology, AI capabilities and expertise as well as the company’s topflight sales team.
According to the release, the transaction will not only drive Plurilock’s sales growth, but also allow the company to enter the CASB market and expand its footprint in the global zero trust cybersecurity sector.
Ian L. Paterson, CEO of Plurilock, commented on the asset purchase, “We are delighted to have completed the acquisition of CloudCodes. Given CloudCodes’ award-winning CASB solution and international customer base, this acquisition bodes well for our growth strategy as we intend to secure new technology assets to offer more advanced zero trust solutions to our customers and expand our market presence within the global cybersecurity industry. We look forward to welcoming CloudCodes’ staff and integrating their innovative products into our robust technology portfolio.”
In recent news, Plurilock announced that it had sold its DEFEND product to the Canadian Department of National Defense (CDND). The transaction was the first deal run through Plurilock’s Integra Networks.
The CDND purchase order calls for Plurilock DEFEND as well as a combination of material and services including software licenses and maintenance support services.
This sale comes on the heels of the Canadian government’s 2021 federal budget which proposed to allocate $330.6 million and $456.3 million over five years to defending taxpayer information against digital breaches and enhancing and protecting its cyber networks respectively.
Global cybersecurity is a rapidly growing sector. The market was estimated at $139.77 billion USD in 2021 and is expected to grow to $376.32 billion by 2029 at a compound annual growth rate of 13.4%.
Equity.Guru’s own Jody Vance sat down with Ian earlier this year to discuss Plurilock, its products and what frictionless authentication means for industry, government, and investors.
Plurilock currently trades at $0.22 per share for a market cap of $15.72 million.
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