Vancouver, British Columbia— Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) and related subsidiaries (“Plurilock” or the “Company”), an identity-centric cybersecurity solutions provider for workforces, has entered into definitive asset purchase agreements (the “Agreements”) dated October 21, 2021 to acquire certain assets (the “Purchased Assets”) of CloudCodes Software Private Limited (“CloudCodes”), an award winning cloud access security broker (“CASB”) based in India (the “Acquisition”).
Since 2011, CloudCodes has provided innovative cloud security SaaS solutions for protecting email and group collaboration platforms, offering single-sign-on (SSO), multi-factor authentication (MFA), and cloud data loss prevention (DLP) solutions. CloudCodes earned approximately CAD$576k in product revenue for its year ended March 31, 2021.
Following the Acquisition, CloudCodes’ existing customers will have access to a larger public organization with adequate financial resources, deep security, IT, AI capabilities and expertise, and the Company’s world-class sales team while Plurilock will gain a larger market presence in the international cybersecurity space and enter the growing CASB segment. In addition, Plurilock, through its Indian subsidiary, Plurilock Security Private Limited (“PSP”) will obtain a technical product team and a new office in Pune, India to complement its office in Mumbai, India.
The Acquisition will add additional functionality within Plurilock’s product portfolio, with CloudCodes’ CASB solution offered as an early access product under the name of Plurilock CLOUD. This additional technology solution creates new opportunity for Plurilock’s customers for a cost-effective cloud security solution and a path to integrate low-friction, high-security behavioral biometric identity with SSO and cloud security functionality. As a result, it is expected that the Acquisition will accelerate Plurilock’s sales growth and cement the Company’s position in the growing zero trust market.
“The acquisition of CloudCodes provides us with an award-winning CASB solution with broad customer adoption across small, medium and large enterprises. Businesses, especially small businesses, continue to face security risks with workforces that are working in a post-COVID, remote-centric world, and it has never been more important to secure cloud resources such as corporate email and file sharing,” said Ian L. Paterson, CEO of Plurilock. “This acquisition aligns with our commitment to becoming the premier cybersecurity solutions provider in the market, acquiring critical technology to enhance organizations’ zero trust architecture. We are looking forward to adding the CloudCodes product to our robust product portfolio and integrating their staff into our growing team, as we continue to develop cutting edge technology that empowers organizations to operate safely and securely while reducing friction for users.”
“We are pleased to join the Plurilock family of companies,” said Debasish Pramanik, co-founder of CloudCodes. “This transaction offers an opportunity to expand the use of our signature product in the North American market and join a fast-growing organization with deep security and IT expertise that is developing the next generation of cybersecurity solutions that can revolutionize the industry.”
Once the Acquisition is completed, CloudCodes assets will be transferred into the Plurilock family of companies, under the guidance of Plurilock’s management team.
Terms of Agreements
The Company and its subsidiaries, Plurilock Security Solutions Inc. and PSP, entered into the Agreements with CloudCodes whereby the Company will acquire the Purchased Assets. Pursuant to the terms of the Agreements, the Company has agreed to pay CloudCodes aggregate consideration of US$1,700,000 payable as follows: (i) US$1,000,000 in cash payable on closing; and (ii) US$700,000 in common shares of Plurilock (the “Consideration Shares”), less any deferred revenue. The Consideration Shares will be issued at a deemed price of C$0.59 per share and will be placed in escrow for 18 months to satisfy any indemnification obligations to the Company.
The Acquisition is subject to customary closing conditions and receipt of the approval of the TSXV. The Company expects to close the Acquisition on or around October 31, 2021.
CloudCodes is an internationally based Cloud Security SaaS platform company, offering a product that protects email and group collaboration platforms like Microsoft 365 and Google Workspace, while providing SSO, MFA and DLP functionality.
Plurilock provides identity-centric cybersecurity for today’s workforces. The Plurilock family of companies enables organizations to operate safely and securely while reducing cybersecurity friction. Plurilock offers world-class IT and cybersecurity solutions through its Solutions Division, paired with proprietary, AI-driven and cloud-friendly security through its Technology Division. Together, the Plurilock family of companies delivers persistent identity assurance with unmatched ease of use.