Cipherpoint sells software division
SYDNEY - September 20, 2021 - (Newswire.com)
Cipherpoint Limited is pleased to announce that, following a review of operations as part of seeking to achieve efficiencies following the acquisition of Brace168, CPT has entered into an agreement to sell select assets of its software division to ArchTIS Limited (archTIS or AR9).
The assets comprise the IP to cp.Protect (an advanced SharePoint protection solution) as well as cp.Discover, (a data discovery and classification platform) the benefit of certain customer contracts, technology and European operations. Both cp. products complement the AR9's NC Protect solutions. Cipherpoint sales and development staff in Europe (Heilbronn, Germany) will join AR9.
CPT will have the right to resell both sets of cp. Products as part of its ongoing business operations however will no longer incur any future development, software marketing and/or support costs.
The purchase price consists of an initial $1,400,000 in cash payable at completion with $200,000 to be escrowed until the novation of certain contracts and potential deferred consideration of up to an additional $1,000,000 in AR9 shares based on total contract values of assigned contracts to AR9 as at 31 March 2022. A summary of the material terms of the Asset Sale Agreement with AR9 is set out below in Annexure A.
Cipherpoint Chairman Ted Pretty said: "This transaction is compelling. Following the sale, CPT's annual operating costs will reduce by approximately $1,060,000 with a very modest impact on revenue. This significantly strengthens our cashflow position. Cipherpoint will now focus on its managed security services business including Brace168. Cash from the sale will be deployed to drive further growth in our managed services business both organically and by potential acquisitions."
The Company will provide a further update on its strategy and outlook with its next Appendix 4C after the end of the September quarter.
Cipherpoint COO Steven Bliim will join archTIS as 'Vice President - Business Development, EMEA' however will remain on the Board of Cipherpoint as a Non-Executive Director. Ted Pretty will be moving to the role of Managing Director and Executive Chairman of Cipherpoint.
Press Release Service by Newswire.com
Original Source: Cipherpoint Sells cp.Protect and cp.Discover Technology Assets