AUCloud announces it has entered into binding agreements to acquire PCG Cyber, Venn IT and Arado.
Australia’s award-winning cyber security and secure cloud provider, AUCloud, (ASX:SOV) today announced that it has entered into binding agreements to acquire three strategically aligned businesses that will deliver the Company further business product, revenue and geographic diversification, and underpins the Company’s pathway to profitability in FY25.
AUCloud has entered into binding agreements for the acquisition of:
- PCG Cyber – a cyber security consultancy firm specialising in Australian Government security advice and operations.
- Venn IT – a Queensland and South Australia based MSP and professional consulting business, data resilience & backup protection specialist servicing customers in the mining, financial services, education, and distribution sectors.
- Arado – is a suite of cloud and managed services, with a strong presence in Queensland. Arado has a customer base in State & Local Government and enterprises accounts across various sectors, including agriculture, industrial, health and resources.
AUCloud CEO and managing director Peter Maloney said:
“The announcement of the acquisitions marked a significant step in our commitment to enhancing our comprehensive suite of cyber security and secure cloud solutions for our customers and positioned the company on a transformational growth trajectory,” Mr Maloney said.
“This expansion not only broadens AUCloud’s product, revenue and geographic spread but also integrates the unique technologies, skills and expertise of highly skilled providers into our operations. The move is set to enhance AUCloud’s ability to deliver end-to-end cyber security, secure cloud solutions and consulting services to cater to the growing needs of Australian organisations and governments,” Mr Maloney added.
“This expansion executes on the strategic review announced in June 2023, to build, partner & acquire new capabilities in cyber security and partner in the multi-Cloud and Public Cloud markets to leverage the capital invested in the existing four Sovereign Cloud platforms. The strategically aligned acquisitions refocus AUCloud as a capital-light, diversified cyber security and cloud solution offering with a national footprint.” Mr Maloney said.
AUCloud is forecast to achieve FY25F Underlying EBITDA of ~$4.7m on FY25F revenue of $36.6m, with transition to positive monthly operating cash flow in 1HFY25.
The three acquisitions build on the sales momentum in the underlying cloud solutions business and create a platform for a scaled enterprise in a fragmented cloud and cyber security sector. The Company intends to continue M&A activity to scale up quickly through further waves of accretive acquisitions to absorb high-quality cyber businesses.” Maloney added.
The Company is undertaking an accelerated renounceable entitlement offer of up to $30 million, underwritten to $25 million to fund the cash consideration under the Acquisitions and transaction costs. The balance of the net proceeds will be used toward funding working capital requirements. Ord Minnett Limited is acting as Sole Lead Manager. AUCloud was advised by Maddocks, Nexia Australia and Ord Minnett.
Read the AUCloud (ASX:SOV) Announcement here.
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Tash Jobson | Media Specialist
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About AUCloud (ASX: SOV)
AUCloud is an ASX-listed Australian owned and operated Cyber Security Managed Security Service Provider (MSSP) and Sovereign Cloud Service (IaaS) specialist that supports Australia’s Legal industry, Governments, Critical National Industries (CNIs) and secure enterprise organisations with the latest sovereign cloud infrastructure, backup and cyber security threat defence and response services.
AUCloud’s Sovereign Cloud Service (IaaS) and Cyber Security Solutions are underpinned by a range of security certifications, including “Certified Strategic” on Digital Transformation Agency’s Hosting Certification Framework (HCF), assessed to the PROTECTED controls of the Australian Signals Directorate’s (ASD) Information Security Manual (ISM) through to the Australian Cyber Security Centre’s Cloud Assessment and Authorisation Framework (CAAF), inclusive of the Information Security Registered Assessors Program (IRAP) certification and ISO 27001.
