Accumuli to spend up to £3.8m on software firm

SALFORD-based IT security company Accumuli has agreed a deal to buy Security Information Event Management company Edge7.

Edge7 is a business based in Malvern, Worcestershire, which helps companies to detect and understand cyberattacks. It provides a “dashboard”-style interface that allows directors to understand their levels of IT security and areas of potential threat.

Accumuli is paying an initial £800,000 in cash for Edge7, but up to £3m more depending on the level of earnings it achieves within the next 12 months. Some two-thirds of any deferred consideration that would be paid would be in Accumuli shares, and around a third would be in cash.

Currently, around 35% of Edge7 is owned by MXC Capital – an early-stage technology funding firm in which Accumuli’s executive director Ian Smith is both a shareholder and director. It will receive £237,165 from the initial £800,000 paid by Accumuli and repayment of a £116,387 loan.

Accumuli’s independent directors have agreed that the terms of the deal are “fair and reasonable”.

Mr Kingsbury said: “We are delighted to have completed our fourth acquisition since commencing the Accumuli buy and build project.  

“Edge 7 is a business with a strong reputation, and acknowledged expertise in implementing and extracting the full benefits from a SIEM platform. This acquisition, along with our increased investment in this field, will enable us to provide our customers with a high-level view on their organisation’s IT security estate, and actionable intelligence on specific threats.

“It provides us with further depth in a skill set which allows us to engage at a higher, more strategic level with our customers and provide more cross selling opportunities across our customer base.”