US firm offers $110m for SecureNet

Powered by SC Magazine
 
ASX-listed Internet security provider SecureNet is to be bought out for $110 million by a global rival, business security vendor beTRUSTed Holdings, pending a shareholder decision in August.

US-based beTRUSTed Holdings Inc, through a wholly-owned subsidiary, has offered $110 million in cash for all the Melbourne-based company's shares.

SecureNet shareholders will be bought out for $1.57 a share, representing a 78 percent premium to the company's closing share price of 88 cents a share on 7 July, when trading was halted pending the announcement, and a 54 percent premium to the company's estimated cash backing per share of $1.02 at the end of this financial year on 30 June. The final decision will be made in August.

SecureNet's directors Geoff Ross and David Greatorex have voted to recommend that all shareholders accept the offer. “This is a very good offer for a very good business,” Ross said. “If this happens, SecureNet will be taken globally to a new level. It can become a significant element in a global business--which I think is fantastic.”

He said beTRUSTed, which has competed with SecureNet on bids in the UK, had operations in the US and in Europe but not in the Asia-Pacific. SecureNet would be strengthened by the businesses' complementarity and synergy, he said.

“It means beTRUSTed will become the largest provider in the world of managed security services and gives us a global platform to deliver SecureNet services. And we were a small Australian start-up which managed our way up,” Ross said.

According to Ross, the company had not been seeking buyers but when the beTRUSTed offer came out of the blue but was too good to refuse. In the last six months, the company has traded as low as 60 cents a share.

“The directors believe that the offer from beTRUSTed is in the best interests of all our shareholders and recognises the underlying value of the company,” he said. “The amazing thing about these two businesses is we actually had the same strategy and it's very unusual to have such a commonality of vision. Global net security is by nature global, so there's no room for the local provider out there who isn't a niche player,” Ross said.

Greatorex and Ross, who control 12.3 percent of SecureNet shares, have entered into pre-bid acceptance agreements with beTRUSTed Holdings to accept the offer. All options over unissued shares will be dealt with “on a basis consistent with the offer for the shares”, the company said in its release to the ASX this morning.

Ross said SecureNet made $20 million in revenue last financial year and has 160 staff around Australia, spread around its three main offices in Melbourne, Canberra and Sydney. The company invoices approximately 150 business and government customers a year.


 
 
 
Top Stories
Frugality as a service: the Amazon story
Behind the scenes, Amazon Web Services is one lean machine.
 
Negotiating with the cloud email megavendors
[Blog post] Lessons from Woolworths’ mammoth migration.
 
Qld govt to move up to 149k staff onto Office 365
Australia's largest deployment, outside of the universities.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...

Latest VideosSee all videos »

The great data centre opportunity on Australia's doorstep
The great data centre opportunity on Australia's doorstep
Scott Noteboom, CEO of LitBit speaking at The Australian Data Centre Strategy Summit 2014 in the Gold Coast, Queensland, Australia. http://bit.ly/1qpxVfV Scott Noteboom is a data centre engineer who led builds for Apple and Yahoo in the earliest days of the cloud, and who now eyes Asia as the next big opportunity. Read more: http://www.itnews.com.au/News/372482,how-do-we-serve-three-billion-new-internet-users.aspx#ixzz2yNLmMG5C
Interview: Karl Maftoum, CIO, ACMA
Interview: Karl Maftoum, CIO, ACMA
To COTS or not to COTS? iTnews asks Karl Maftoum, CIO of the ACMA, at the CIO Strategy Summit.
Susan Sly: What is the Role of the CIO?
Susan Sly: What is the Role of the CIO?
AEMO chief information officer Susan Sly calls for more collaboration among Australia's technology leaders at the CIO Strategy Summit.
Meet the 2014 Finance CIO of the Year
Meet the 2014 Finance CIO of the Year
Credit Union Australia's David Gee awarded Finance CIO of the Year at the iTnews Benchmark Awards.
Meet the 2014 Retail CIO of the Year
Meet the 2014 Retail CIO of the Year
Damon Rees named Retail CIO of the Year at the iTnews Benchmark Awards for his work at Woolworths.
Robyn Elliott named the 2014 Utilities CIO of the Year
Robyn Elliott named the 2014 Utilities CIO of the Year
Acting Foxtel CIO David Marks accepts an iTnews Benchmark Award on behalf of Robyn Elliott.
Meet the 2014 Industrial CIO of the Year
Meet the 2014 Industrial CIO of the Year
Sanjay Mehta named Industrial CIO of the Year at the iTnews Benchmark Awards for his work at ConocoPhillips.
Meet the 2014 Healthcare CIO of the Year
Meet the 2014 Healthcare CIO of the Year
Greg Wells named Healthcare CIO of the Year at the iTnews Benchmark Awards for his work at NSW Health.
Meet the 2014 Education CIO of the Year
Meet the 2014 Education CIO of the Year
William Confalonieri named Healthcare CIO of the Year at the iTnews Benchmark Awards for his work at Deakin University.
Meet the 2014 Government CIO of the Year
Meet the 2014 Government CIO of the Year
David Johnson named Government CIO of the Year at the iTnews Benchmark Awards for his work at the Queensland Police Service.
Q and A: Coalition Broadband Policy
Q and A: Coalition Broadband Policy
Malcolm Turnbull and Tony Abbott discuss the Coalition's broadband policy with the press.
AFP scalps hacker 'leader' inside Australia's IT ranks.
AFP scalps hacker 'leader' inside Australia's IT ranks.
The Australian Federal Police have arrested a Sydney-based IT security professional for hacking a government website.
NBN Petition Delivered To Turnbull's Office
NBN Petition Delivered To Turnbull's Office
UTS CIO: IT teams of the future
UTS CIO: IT teams of the future
UTS CIO Chrissy Burns talks data.
New UTS Building: the IT within
New UTS Building: the IT within
The IT behind tomorrow's universities.
iTnews' NBN Panel
iTnews' NBN Panel
Is your enterprise NBN-ready?
Introducing iTnews Labs
Introducing iTnews Labs
See a timelapse of the iTnews labs being unboxed, set up and switched on! iTnews will produce independent testing of the latest enterprise software to hit the market after installing a purpose-built test lab in Sydney. Watch the installation of two DL380p servers, two HP StoreVirtual 4330 storage arrays and two HP ProCurve 2920 switches.
The True Cost of BYOD
The True Cost of BYOD
iTnews' Brett Winterford gives attendees of the first 'Touch Tomorrow' event in Brisbane a brief look at his research into enterprise mobility. What are the use cases and how can they be quantified? What price should you expect to pay for securing mobile access to corporate applications? What's coming around the corner?
Ghost clouds
Ghost clouds
ACMA chair Chris Chapman says there is uncertainty over whether certain classes of cloud service providers are caught by regulations.
Was the Snowden leak inevitable?
Was the Snowden leak inevitable?
Privacy experts David Vaile (UNSW Cyberspace Law and Policy Centre) and Craig Scroggie (CEO, NextDC) claim they were not surprised by the Snowden leaks about the NSA's PRISM program.
Latest Comments
Polls
Which bank is most likely to suffer an RBS-style meltdown?





   |   View results
ANZ
  20%
 
Bankwest
  9%
 
CommBank
  11%
 
National Australia Bank
  17%
 
Suncorp
  24%
 
Westpac
  19%
TOTAL VOTES: 1440

Vote