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Aurionpro Solutions today said it will acquire US-based Spikes Security to strengthen its position in the enterprise security space.
As part of the agreement, Aurionpro will merge its enterprise security division with Spikes and the merged subsidiary will be headquartered in the Silicon Valley.
“Under the non-cash deal, Aurionpro will own 80 per cent of the new combined subsidiary and the remaining will be with Spike’s investors,” Aurionpro CEO Samir Shah told PTI.
The new subsidiary has also received fresh equity investment of $2.5 million from new and existing investors including Benhamou Global Ventures and Javelin Venture Partners, he added.
Spike is a network-based web malware isolation products. Set up in 2012, it has a team of 30 people. It had raised funds about 15 months back, following which it had a valuation of about $22 million.
“With everything going digital, security has become a central theme and also a fundamental challenge. With this merger, we will be able to expand the addressable market with offerings ranging from identity and access management to web malware isolation, which is a rapidly growing area in cyber security,” he said.
The addressable market size in 2016 is estimated to be about USD 18 billion.
The closure of the merger process is targeted to be completed in six weeks.
The subsidiary will have Michael Mansouri (current CEO of Spikes Security) as CEO and Swapnil Mehta as President.
Mehta currently heads the enterprise security division at the BSE-listed Aurionpro.
“Highly targeted and regulated industries such as banking, financial services, government and healthcare face unique cyber—security challenges and risks posed by sophisticated threat actors,” Shah said.
The subsidiary will be able to offer protection from advanced malware attacks and data breaches caused by fraudulent or unauthorised access to enterprise resources and data, he added.
“Besides, it will leverage offshore based R&D teams to build new products and will optimise and eliminate duplications for operational efficiency,” he said.
Shah said Aurionpro’s enterprise security division, which has about 250 employees across India, the US, the UK and Australia, accounted for 37 per cent of the company’s business in FY’15.
“This has already grown to 42 per cent in the first three quarters of FY’16 and will continue to be a significant portion of our business,” he added.
The company’s revenues stood at Rs 261.31 crore during 2014-15 fiscal.
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