Espoo-based MSSP Nixu has laid out ambitions to become a northern European powerhouse after acquiring Danish firm Ezenta and addingits fourth country on the continent.
Nasdaq Helsinki-listed Nixu, which racked up €40m in revenues for its 2018 financial year, has paid €5.25m for the Danish firm in addition to 84,960 shares. Nixu has promised an additional payment of up to €2m, to be paid at the start of 2020, if Ezenta hits profitability targets for 2019.
The transaction will be financed through a combination of cash, shares and a €2.5m bank loan and is set to close at the beginning of April.
Ezenta turned over €8.8m in 2018 and grew its profitability by 23 per cent during the same year. The Aarhus-based firm's founders and employees will join Nixu and its CEO Niels Onat will lead the new Danish operation.
The firm claims to be an MSSP that works with vendors including Barracuda, Cylance, Check Point, Microsoft, Symantec, RSA and Ruckus.
According to Nixu CEO, Petri Kairinen, the acquisition is in line with its ambitions to expand across northern Europe to better serve its clients.
The MSSP organically expanded into the Netherlands in 2015. In 2016, it acquired Europoint networking and Safeside Solutions in Sweden and set up a subsidiary in San Jose, in the US.
It only acquired the cyber threat intelligence team of Swedish provider Vesper Group earlier this month.
But the M&A spree has weighed heavily on Nixu's balance sheet. EBIT came in at a €1.45m loss in 2018, down from a €492,000 profit in 2017.
Nixu Group is now a 355-employee-strong operation, and has grown its revenues by 235 per cent since 2013.
"Our aim is to expand near our clients in northern Europe. Earlier established footholds in Sweden and the Netherlands are stabilising and growing nicely. Now Ezenta joining Nixu is a natural next step to continue on our growth journey and to establish market presence in Denmark. I'm thrilled to welcome Ezenta professionals to the Nixu family," said Nixu CEO Petri Kairinen.
"Ezenta's continuous technology-based services and expertise in intrusion detection and investigation are easy to combine with our Nixu Cyber Defence Centre service, enabling us to provide even better services and more holistic cybersecurity partnership to our clients."
Nixu's rapid European expansion follows that of Netherlands-based MSSP SecureLink, which became a 650-employee MSSP logging €250m in revenues after a spate of acquisitions across the Nordics, the UK and Germany.
Some say performance, others say money but it may be systems and processes that carry the day
Greg Lock is replaced by former HPE and IBM boss Peter Ryan
Public cloud vendor also pledges to boost training with France universities partnership
CEO Robbins claims Cisco has done everything necessary to reduce exposure to new 25 per cent levy