Plurilock Security bulks up its international assets

Canadian cybersecurity company Plurilock Security (Plurilock Security Stock Quote, Charts, News, Analysts, Financials TSXV:PLUR) has announced a new acquisition in CloudCodes Software, with the deal expected to further Plurilock’s international reach and strengthen its offerings in the workforce cybersecurity space.

Vancouver-based Plurilock announced on Thursday a definitive agreement to buy assets of CloudCodes, a cloud access security broker based in India which had approx. $576,000 in product revenue for its latest fiscal year. The acquisition will see Plurilock add to its India assets while strengthening its cloud-based security capabilities.

“The acquisition of CloudCodes provides us with an award-winning CASB [cloud access security broker] solution with broad customer adoption across small, medium and large enterprises. Businesses, especially small businesses, continue to face security risks with workforces that are working in a post-covid, remote centric world, and it has never been more important to secure cloud resources such as corporate email and file sharing,” said Ian L. Paterson, CEO of Plurilock, in a press release. 

“This acquisition aligns with our commitment to becoming the premier cybersecurity solutions provider in the market, acquiring critical technology to enhance organizations’ zero trust architecture,” Paterson said.

Plurilock offers identity-centric cybersecurity products aimed at today’s work security environments which often feature multiple passwords, bring-your-own-device issues, hardware authentication devices and more. Plurilock’s AI-driven ADAPT and DEFEND solutions use behavioural biometrics and machine learning technology to authenticate users, where ADAPT looks for recognizable movement patterns to construct a user’s identity signature and DEFEND continuously monitors user mouse and keystroke behaviour to detect unauthorized usage.

The $35 million market cap company completed its qualifying transaction to list on the TSX Venture Exchange last September. PLUR is currently up 84 per cent over the past 12 months and up 49 per cent year-to-date. 

Plurilock is increasingly working with a US client base in the public sector, announcing in late September US$11.70 million in contracts and orders over the previous six months, including a US$1.08 million purchase order with the US Air Force, a US$1.9 million Splunk purchase order with the US Department of Defense and a US$1.15 order with the US Department of the Navy.

“Our rapid sales growth is indicative of the demand we are seeing from our growing client base of enterprise customers,” said Paterson in a September 28 press release. “Since April 2021, the establishment of our Solutions Division has resulted in more contracts and orders signed, as well as a stronger footprint in the U.S. cybersecurity market.”

“In addition, our Technology Division has contributed to our sales expansion as we signed two high-margin purchase orders and entered the overseas market for the first time in our company’s history. Moving forward, we plan to continue securing more clients and expanding our business footprint by executing on our M&A strategy and growth initiatives,” he said.

By the numbers, Plurilock finished 2020 with $479,329 in revenue compared to $646,900 in 2019, with the company pointing to pandemic-related challenges for the decrease. In April, Plurilock acquired US cybersecurity business Aurora Systems Consulting, a game-changing move which has pumped up the company’s overall numbers. For Plurilock’s most recent quarter, its second quarter 2021 delivered in August, revenue was $8.6 million compared to just $79,512 for Q2 of 2020. Adjusted EBITDA for the 2021 Q2 was a loss of $985,142, while the company finished the second quarter with cash and equivalents of $5.0 million.

Also this week, Plurilock hosted a Partner Summit, bringing together the company’s channel partners to go over product demos and talk about the challenges faced in the current cybersecurity climate and how organizations can build a zero trust architecture to protect themselves from attacks.

“With estimates that cybercrime will cost $6 trillion annually by 2021, according to Cybersecurity Ventures, we felt it was important to engage with our partners to discuss the cybersecurity landscape and demonstrate how we can support them and the organizations they work with,” Paterson said in a press release. 

“We provide solutions that ensure reliable identity assurance and prevent breaches, operate invisibly without user friction, and play a unique role in the establishing of a zero trust architecture,” he said.

Disclosure: Plurilock Security is an annual sponsor of Cantech Letter.