Allied Electronics (Altron) subsidiary Altron TMTSA is planning to acquire JSE-listed Etion cyber and information security subsidiary LawTrust for R245-million.
The duo entered into an agreement that will see Altron TMT absorb LawTrust to enhance its information technology (IT) security service offerings and capabilities, accelerate its market positioning and provide a strong platform for the growth of Altron.
The acquisition of LawTrust will further strengthen Altron’s position in the IT security sector after its March 2020 acquisition of identity and data specialists Ubusha Technologies, which has since enhanced Altron’s security capabilities in cloud and managed security operations Altron Security.
Altron said the acquisition, coupled with the fulfilment capability of Altron Security, will enable the acceleration of its customer’s digital transformation journey, increase the ability to transact digitally through sound identity security and embed security controls to improve digital customer experiences while complying with evolving IT security legislative requirements.
“The Lawtrust acquisition brings complementary capabilities which include the ability to proof identities of workforce, consumers, citizens and devices and the legal non-repudiation through digital signatures and encryption,” the company said in an update to shareholders.
Lawtrust owns and develops its own intellectual property which it uses in combination with third party solutions to deliver services to its clients and Lawtrust has an annuity base of 70%.
The transaction remains subject to the fulfilment or waiver conditions precedent by July 15.
The value of the net assets of Lawtrust as at 30 September was R102-million.
The unaudited and unreviewed segment profit attributable to Lawtrust for the six months ended September 30 was R21-million.