Ansys, diversified digital technology group, plans to purchase LAWtrust, a developer and provider of cybersecurity solutions, for R109 million.
The company announced on Monday that it entered into a letter of intent with the shareholders of Law Trusted Third Party Services (Pty) Ltd (LAWtrust) to purchase 100% of the business.
The global cyber security market has grown over 35 times since 2005, primarily as a result of an unprecedented increase in criminal activity.
Recent reports published by Markets and Markets indicates that the cyber security market will grow from $137 billion in 2017 to $232 billion in 2022. Gartner similarly predicts that spending on information security, a subset of cyber security and the sector in which LAWtrust operates, will reach $93 billion in 2018.
The extensive use of authentication, encryption, and biometrics in enterprise applications and on the Internet, means that LAWtrust is actively engaged across twelve solution segments within the cyber security market. The segments in which LAWtrust operates are high-growth segments with a compound annual growth rate in excess of 20%.
Ansys said in a statement that the acquisition of LAWtrust will enhance Ansys’ current cyber security business by introducing strategically aligned products and by providing access to new markets which, in turn will provide significant annuity revenue.
“The incorporation of LAWtrust’s technical team into the Ansys team will allow Ansys to develop and provide an expanded range of solutions to a combined client base,” said the company.
The deal is subject to various conditions being fulfilled such as completion of detailed financial, tax, legal, technical, commercial, and human resources due diligence to the satisfaction of Ansys. Plus, review of key projects, accreditations and intellectual property and intangible assets to the satisfaction of Ansys, etc.
LAWtrust was founded by Christi and Maeson Maherry and began operations in 2006. Today it provides services to over 500 clients in the private and public sectors and is considered to be one of the leading cyber/information security companies in South Africa, providing for a range of requirements within the sector.
It also owns and develops its own intellectual property which it uses in combination with third party solutions to deliver services to its clients.