Listed firm swoops for Yorkshire internet security business
INTERNET security firm RandomStorm has been acquired in a deal worth almost £9m by listed IT security and risk management business Accumuli.
Wetherby-based RandomStorm provides a combination of security products that scan IT networks for signs of attack or malware and consultancy services that test clients’ networks for any vulnerabilities that could enable a thief to steal payment card information, or sensitive data.
Founded in 2007 by Robin Hill and Andrew Mason, RandomStorm’s customers include premier league football clubs, major retailers and legal firms. Its unaudited results for the year ended April 2014 showed revenues of £3.5m, EBITDA of £1m, gross assets of £2m and net assets of £0.7m. In the five months to September 30 2014 (unaudited) RandomStorm generated revenues of £1.8m and EBITDA of £0.4m.
The firm employs 57 people across its main site in Wetherby, sales offices in London and Glasgow and a development team based in Thorpe Park, Leeds. Andrew Mason and Robin Hill will remain with the business for 12 months after completion to manage the transition to Accumuli and will continue to provide sales and technical leadership to the business.
Headquartered in Basingstoke and with an office in Leeds, Accumuli said the acquisition creates an operation of significant scale, skills and capability unique to the UK IT security market. Its chief executive, Gavin Lyons, added that the close proximity of the RandomStorm business to Accumuli’s existing Leeds office provides a “significant opportunity to create a substantial base in the Leeds area which will be capable of accommodating all current staff of both businesses and attracting and retaining future talent”.
Accumuli has acquired the entire issued share capital of RandomStorm for net cash consideration of £8.9m which is being funded through a combination of existing cash resources and new bank debt.
Lyons added: “RandomStorm is a business which has excelled in providing market leading integrated information security solutions and services to help its customers manage IT risk and implement security best practice. Their expertise and experience in IP creation and security services will add tremendous value to our business and our customer intimacy strategy.”
The total consideration payable by Accumuli is £10m in cash for the entire issued share capital of RandomStorm. At completion there was £1.1m in cash in the company, which means the net price payable by Accumuli on completion is £8.9m. This has been funded from Accumuli’s own cash resources and through securing a £10m debt facility with the group’s bank, 50% of which is on a five-year term loan and 50% of which is on a revolving credit facility.
