Archtis Ltd (ASX: AR9) shares are up 8.33% on Thursday afternoon following the company’s acquisition of global information protection business, Nucleus Cyber. At the time of writing, the Archtis share price is trading at 39 cents after closing yesterday’s session at 36 cents.
What’s moving the Archtis share price? In contrast to a wider market selloff, investors are today driving up the Archtis share price after the company announced news of its latest acquisition.
Archtis is a Canberra-based firm that specialises in the design and development of products, solutions and services for secure information sharing and collaboration. The company has a broad range of products and service offerings such as:
- Kojensi, a highly secure and trusted platform for sharing sensitive and classified files and document collaboration.
- Axiomatics, a dynamic and externalised authorisation solution.
- Appsian, a security platform with dynamic control access.
- Consulting and solutions services for secure information sharing and inter-organisation collaboration.
Nucleus Cyber’s customers include companies such as Virgin Australia Holdings Ltd (ASX: VAH), the Australian Government Department of Defence and Department of Health, Melbourne Polytechnic and Paramount Pictures.
Acquisition details Archtis will acquire 100% of Nucleus Cyber for a total potential consideration of up to $9.75 million in Archtis shares. The company believes that this acquisition is highly strategic and transformational for its growth trajectory and global presence. Archtis will gain immediate presence in the key North American market, as well as access to the Microsoft business product suite.
Opportunities for the combined business The acquisition presentation highlights the company’s initial focus on foundational benefits such as simplifying its combined licensing and revenue model, solidifying its products, stabilising the combined customer base, introducing the Microsoft relationship to Archtis, and developing initial awareness.
This will position the company in 2021 and beyond to focus more on expansion including a direct regional expansion across the European Union, Middle East and Asia Pacific regions. It will also enable Archtis to expand its product alliance with Microsoft Teams and security platforms as well as delivering lead generation and opportunities within US federal and central governments.
The Archtis share price has increased 200% in year-to-date trading.
The post Archtis (ASX:AR9) share price jumps 8% on cyber security acquisition appeared first on Motley Fool Australia.
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