Melbourne-based cybersecurity vendor Senetas has announced the sale of its Votiro cybersecurity subsidiary to US-based Menlo Security in a deal worth US$37.5 million (A$60 million).
The transaction involves Votiro selling its Israeli operating subsidiary, Votiro Cybersec Limited, to Menlo Security, with payment structured as 40 per cent cash and 60 per cent Menlo shares.
ASX-listed Senetas, which holds a 55.7 per cent controlling stake in Votiro, will maintain exposure to Menlo's growth through its retained shareholding in Votiro.
Votiro operates its Zero Trust Data Detection and Response platform, and is headquartered in Austin, Texas with offices in Australia, Israel and Singapore.
It provides real-time privacy masking, data compliance, file-borne threat prevention and actionable data insight services.
"Votiro Cybersec Ltd becoming part of the Menlo business represents a significant opportunity to accelerate the growth of the underlying Votiro business," Andrew Wilson, Senetas chief executive, said.
About 45 per cent of the base consideration will be deferred for 12 months, contingent on the renewal of key customer contracts. The deal also includes potential for additional payments if certain conditions are met.
Menlo Security, backed by major investors including Vista Equity Partners, HSBC, and JPMorgan Chase, serves over 1000 global enterprises and counts eight of the world's ten largest financial institutions as customers.
The company specialises in secure enterprise browser solutions.
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