Plurilock Security expanding into new markets

Vancouver-based cybersecurity company Plurilock Security (Plurilock Security Stock Quote, Charts, News, Analysts, Financials TSXV:PLUR) continues its M&A program with the announcement on Monday of new acquisition Integra Networks, an enterprise IT and cybersecurity solutions provider.

Plurilock, which has the Plurilock DEFEND and Plurilock ADAPT authentication products along with Aurora, a security consulting and cybersecurity industry products and technology division, said the deal will give the company access to the Ottawa-based Integra’s customer base and allow it to expand into new territories in Eastern Canada as well as new inroads with Canadian government clients. Among Integra’s top-tier customers are Shared Services Canada, Department of National Defence and the RCMP.

The deal will see Plurilock pay $1.2 million, including $600,000 in cash and $200,000 in Plurilock shares (476,190 shares at $0.42 per share). $75,000 in cash and 178,571 shares have been place in escrow for 12 months and the purchase also features an earnout provision for up to $400,000 in shares.

“We are excited to welcome the Integra team to the Plurilock family,” said Ian L. Paterson, CEO of Plurilock, in a press release. “Foundationally, Integra checked a number of boxes we were looking for in an accretive acquisition. With a strong presence in the Canadian federal government with Tier 1 government agency customers, a strong balance sheet, proven sales of CA$5 million, 19 per cent gross margin over the last 12 months, and profitable operations resulting from 35 years of experience, we are looking forward to on-boarding the team and exploring new synergistic opportunities to scale our combined operations.”

Plurilock announced this past October the acquisition of CloudCodes Software, a leading cloud security provider in India, a deal which needs India regulatory approval to close, while going forward Plurilock says its M&A pipeline will remain active.

“Given Plurilock’s active M&A program, the Company plans to use a combination of debt, earn-outs and rewards-based compensation in addition to cash and common shares to complete new acquisitions in order to minimize shareholder dilution,” Plurilock said in the Monday release.

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