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Thursday, 29 October 2020 17:12

archTIS acquires US information protection business Nucleus Cyber

archTIS acquires US information protection business Nucleus Cyber Pixabay

ASX-listed Canberra-based cyber security firm archTIS has acquired the Massachusetts-based global information protection business Nucleus Cyber for up to $9.75 million in shares, the company said in an announcement to the ASX on Thursday.

archTIS said the acquisition would create a global, geographically diverse company that would support its strategy of being the top provider of enforced access control platforms for securing and sharing digital information.

archTIS' cloud-based data-sharing platform Kojensi Gov is claimed to have a unique security model that enables government agencies to share information and collaborate while meeting regulatory, security and sovereign compliance requirements for classified information up to the level required for top-secret government information.

The platform can be used for both inter-agency and intra-agency collaboration and once one is on a network connected to the platform, one can log in from a Web front-end and start working.

The company is eager to get on the front foot as far as earning revenue goes, having suffered a loss of $3.72 million for the 2019-20 financial year.

Regarding the Nucleus Cyber buy, archTIS said this would leverage its core capabilities and expand its offering into the Microsoft product suite.

This would open new markets through Nucleus Cyber's Microsoft co-sell agreement through field sales and channel resellers and archTIS said it expected significant growth from this revenue stream in 2021.

archTIS chief executive Daniel Lai said: “This acquisition is transformative for archTIS. The acquisition of Nucleus Cyber expands our offering into the Microsoft business product suite and opens up new global sales and distribution channels and provides significant new revenue streams to the business.

"This forms a critical component of our global strategy of being the world’s premier provider of policy enforced access control platforms for securing and sharing digital information.

"We have known and worked with the Nucleus Cyber team for an extended period, and we look forward to welcoming them to the archTIS business and continuing to facilitate secure collaboration and information protection for our clients.”

Nucleus Cyber chief executive Kurt Mueffelmann said: “We are excited to be joining archTIS. Nucleus Cyber and archTIS teams share a long relationship and common technology approach of using Attribute-Based Access Control in securing sensitive information.

"Secure information sharing across enterprise and government is an ongoing problem, exacerbated by the exponential increase in remote work and the use of Microsoft’s collaboration tools that have been fuelled by the pandemic.

"The combination of archTIS and Nucleus Cyber technologies and talent ensures we are at the forefront of providing market leading information security solutions. I look forward to joining archTIS as its chief operating officer and continuing to accelerate our growth.”

The acquisition is expected to close before the end of the year.

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Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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