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SecureData expands into the UK with MIS buy

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SecureData plans to expand into the growing information security market in the UK and Europe through its proposed acquisition of a majority stake in UK-based MIS Corporate Defence Solutions. 

Under terms of the transaction, SecureData and the MIS management team will buy 100% of the issued share capital of MIS Corporate Defence Solutions for a maximum purchase consideration of £14,2-million, payable in cash. More than 90% of MIS’s existing shareholders have already given their approval for the acquisition.
SecureData will pay a maximum of £12,5-million for 76% of MIS Corporate Defence Solutions’ share capital. SecureData will fund the transaction through the issue of new SecureData ordinary shares worth about £7,1-million and by raising £5,4-million in senior debt in South Africa. The MIS management team will pay £1,7- million in cash for their 24% stake in the business.
MIS is one of the leading independent information security solutions firms in the UK. It acts as a reseller of market-leading information security and risk management products and as an outsourced provider of security monitoring and threat mediation services to a range of blue chip customers in the UK. More than 50% of MIS’ revenue is services based or recurring in nature.
Dean Brazier, CEO of SecureData, says: “SecureData is looking beyond Africa for growth now that we’ve entrenched our position as one of the continent’s leading information security groups. This transaction gives SecureData a significant footprint in the large and growing UK market, which is also close to the opportunities offered by the rest of Europe.
“The MIS business has a similar culture, customer profile and product range to SecureData, and is hence a close fit with our business. The acquisition of MIS Corporate Defence Solutions will allow us to develop a solid base of offshore revenues.
“MIS will also offer a base for international expansion of SecureData subsidiaries that offer specialised skills and services, including Sensepost. We also envisage that the technologies and processes used by MIS to deliver managed services to its customer base will enhance the managed information risk services we offer our African business partners and customers.”
The acquisition will be effective from the date that the last suspensive condition is fulfilled, which is expected to be no later than 28 February 2008.