NetLinkz buys Melbourne's SSI Pacific for $10.2 million

ASX-listed network security vendor NetLinkz has acquired Melbourne-based systems integrator SSI Pacific for a total of $10.2 million.

Founded in 2009, SSI specialises in designing and implementing lawful interception of data and data retention systems for telcos, government agencies and enterprise customers. Its customer base includes “blue chip telecommunication companies,” law enforcement and intelligence agencies across ANZ and Asia-Pacific.

NetLinkz said in an ASX announcement (pdf) that the significance of the acquisition lies in SSI’s IP. NetLinkz plans to incorporate its flagship VIN (virtual invisible network) software into SSI’s products, adding another layer of security and enhanced connectivity. SSI will also provide NetLinkz with an additional sales channel for VIN, which allows customers to create a new LAN fabric over WANs or other large networks.

In addition to product synergies, NetLinkz expects an additional $1.5 million in annualised profit as a result of the acquisition.

NetLinkz said it would also retain SSI’s key staff: CEO Samuel Py and CTO Stephane Molle.

The acquisition is still subject to consent from two of SSI’s major customers, and key personnel executing ongoing consulting agreements.

Netlinkz will pay 80 percent of the $10.2 million price tag by 30 November 2019, and the remainder payable over the next two years.

Netlinkz CEO James Tsiolis said the opportunities for revenue generation stemming from the acquisition would provide the company with a platform for global expansion.

“We are very pleased to welcome SSI to the Netlinkz Group and look forward to working closely with Samuel and Stephane to provide seamless and secure network connectivity solutions to their long-standing customer base,” said Tsiolis.