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UK managed security services player, Accumuli, has acquired Signify Solutions for a net cash consideration of £2.6m. To the year ended 31 March 2013, Signify generated £560k of EBITDA on revenues of £2.9m. Signify provides 2FA (Two-Factor Authentication) security solutions, which use a combination of RSA technology (public key cryptography algorithm) and its own Passcode OnDemand software. The purpose of 2FA is to ensure organisations are able to not only identify the user, but can also ensure that only the right users can gain access to data and systems. This is particularly relevant in the context of the growing number of organisations that are implementing Bring Your Own Technology approaches.
Acquisitions have been fundamental to the making of Accumuli. In 2011/2012, it made numerous acquisitions that boosted revenue from £2.4m to £12.4m (see Accumuli confirms expansive year). We’ve just spoken to the firm’s CEO, Gavin Lyons, who explained that his focus is organic growth. Lyons says he is not proactively seeking acquisitions, and will only make a purchase if it adds real strategic value (and shareholder value, of course).
Lyons has gone to great lengths to ensure that all acquired entities are integrated fully into Accumuli systems and that staff feel they are part of “one team”. As we know (see 2e2 hits the buffers), getting a buy and build strategy wrong can have catastrophic consequences!
Accumuli is set to release full-year results in late June so we’ll get more insight into the level of organic growth of the company at that point.
