Accumuli, which via its buy and build strategy aims to become the “UK’s leading managed IT security services provider” (see Accumuli confirms expansive year), has made its fourth targeted acquisition. It is buying Edge 7, a “Security Information Event Management (SIEM) consultancy”. Edge 7 provides hardware, software licenses and consultancy to allow clients to report, monitor and manage security event correlation.
Edge 7 is a very new company, with just over a year of trading behind it. It was formed in early 2011 by former employees of the UK division of network security software supplier, ArcSight. ArcSight, as HotViews readers will know, was sold to HP in 2010 – see HP looks to software growth through security buy. Edge 7 now acts as a reseller for ArcSight as well as for Splunk and Q1 Labs. In the 13 months to April 2012, Edge 7 reported revenues of £0.9m, a gross profit of £0.4m and a loss before tax of £0.08m. Accumuli has agreed to pay an initial consideration of £0.8m to bring it into the Accumuli fold plus contingent consideration of up to £3.0m in a mixture of cash and shares dependent on EBITDA performance through to September 2013.
Edge 7 will sit alongside the previous acquisitions of Boxing Orange (also an ArcSight reseller – see Accumuli accumulates security services provider); systems integrator Fujin (see Accumuli accumulates Fujin) and network products reseller Tuscany Networks (reverse takeover, which launched Accumuli onto AIM). According to management Edge 7 is increasingly seeing opportunities for managed SIEM services; those services would have previously been placed with a third party but will be fulfilled by the Accumuli Group post acquisition. Slowly the SIEM jigsaw looks to be coming together.