rhipe Limited (ASX:RHP) has entered into binding legal agreements to acquire 100% of the share capital of emtDistribution Pty Ltd (Australia) and emt Distribution Pte Limited (Singapore).
emt is an Australian headquartered cyber security distribution specialist that focuses on sourcing innovative security software vendors and working with channel partners to deliver both on-premise and cloud-based security solutions, focused on protecting companies against cyber security attacks. emt’s security product offering is centred around the Australian Signals Directorate’s eight essential requirements for a company’s cyber defence strategy. emt has operations in Australia, the Middle East and Asia, with 40 employees and sales of $26m across these locations.
rhipe CEO, Dominic O’Hanlon, said the acquisition strengthens company’s presence in security software distribution and will expand rhipe’s offering to the enterprise market, providing partners with a full spectrum of security solutions from a wide choice of vendors, to help them build their own security portfolio.
Mr O’Hanlon, said the acquisition complements rhipe’s existing cyber security software offering centred around Microsoft’s product stack and also the recent launch of rhipe’s own SMB focused encryption product “SmartEncrypt”.
He said the emt business is positioned for growth in the cyber security market, with Gartner currently valuing the IT security market at US$23 billion (APAC incl. Japan) with a forecast annual growth rate of 10% from 2021 to 2024. Key drivers of the growth include regulatory compliance, insurance requirements, increased risk of threat and customer risk factors.
emt was founded in 1988 and has a portfolio of over 15 security vendors that offer cyber security solutions, catering to the needs of both small and medium businesses (SMB) and large enterprise companies. Services provided by emt include pre and post sales technical support and professional services.
emt Distribution has an incredible track record in delivering software security products and solutions via their distribution channels. By combining emt’s expertise in security with rhipe’sreach, we will be able to offer partners across APAC effective solutions to protect against growing threats around cyber security,” Mr O’Hanlon said.
“We plan to continue investing in the emt business to support its continued growth, delivering emt’s extensive portfolio of vendor security products to rhipe partners, while providing emt partners with access to SmartEncrypt and rhipe security vendor products .We look forward to welcoming the emt team to the rhipe family and leveraging their outstanding skills and expertise, to deliver greater outcomes for our partners and their customers.”
rhipe is expected to complete the purchase the Australian and Asia operations of emt in the next couple of months, with the purchase of the Middle East operations expected to occur in the first half of next financial year.