Cybersecurity firm Secarma Ltd has taken a 13.3% stake in Shearwater Group PLC, in a deal worth £7.4m.
The transaction sees Secarma, a leading provider of penetration testing and cloud security solutions, sell its legacy Pentest subsidiary to Shearwater.
Consideration of £7.4 million is to be paid by Shearwater through £6.7 million in new ordinary shares and £0.7 million in loan notes.
The assets being sold include the Databridge Software Division, which owns and operates a cloud-based platform-as-a-service software package. Databridge is licensed to customers on a recurring revenue basis and integrates IT service management platforms and ticketing systems.
Following the transaction, Secarma will continue to employ a 40-strong team of penetration testers and senior management and is owned by UKFast founder and CEO Lawrence Jones MBE.
Jones said: “Secarma continues to go from strength to strength and we have laser focus on the direction we want to take the business.
“Two decades’ experience building and supporting cloud platforms with UKFast, and working closely with customers, has given us clear insight into their needs. Our fast-growing cloud security division is where we’re focussing our attention.
“We’re building out some really innovative recurring revenue products to give peace of mind to our customers.”
Secarma continues to foster an ever-closer partnership with British hosting giant UKFast, also owned by Lawrence Jones MBE, addressing the overlapping needs of their respective customer bases and service offerings in response to the significant rise in cybercrime.
Jones said: “Within UKFast, we’re developing our Security Operations Centre, our Threat Monitoring service and just this week we announced a £4m investment in our global DDoS protection network, DDoSX. These products sit incredibly well alongside Secarma’s cloud security division.”
Shearwater has a longstanding relationship with Secarma and will continue to collaborate across certain projects.
Shearwater Group chairman David Williams said: “Secarma is going to be a meaningful shareholder in Shearwater Group and we’re looking forward to working closely together for the benefit of all parties.”
Jones added: “There’s a symbiotic relationship and close synergies between the two businesses.”