Plurilock Security acquires Atrion Communications, a provider of IT consulting and cybersecurity solutions. The purchase price is approximately $3.7 million, or approximately 6.9 times Atrion’s annual EBITDA, as calculated by MSSP Alert.
This is technology merger and acquisition deal number 743 that MSSP Alert and sister site ChannelE2E have covered so far in 2022.
Plurilock Security, Atrion Commercial Backgrounds
Plurilock, based in Victoria, British Columbia, Canada, was founded in 2016. The company, which has 37 LinkedIn-listed employees, develops Plurilock ADAPT for MFA (multi-factor authentication) login and Plurilock DEFEND for continuous authentication . Plurilock also has:
- Aurora, a cybersecurity consultancy based in Torrance, California. The company has 109 employees listed on LinkedIn.
- Integra Solutions, an MSP and IT solutions provider based in Ottawa, Ontario, Canada. This company has 16 coveted employees on LinkedIn.
Now Atrion is part of the Plurilock family of companies. Atrion is a provider of network infrastructure and security solutions, offering provisioning services, professional services and solution integrations, managed services and cybersecurity consulting. Atrion is based in Branchburg, New Jersey. The company has 28 employees listed on LinkedIn.
The agreement allows Plurilock to expand its geographic footprint through US East Coast operations.
Acquisition of Atrion: the financial calculations behind MSP’s valuation
For its fiscal year ended March 31, 2022, Atrion generated:
- $14 million in revenue;
- $3.3 million in gross profit; and
- $533,300 in EBITDA.
The $3.7 million purchase price included:
- $2,000,000 in cash payable at closing, subject to working capital adjustment;
- $500,000 in cash payable on the date that is 90 days after closing; and
- Nearly 1.3 million Plurilock shares issued at closing and a similar amount issued one year after closing at $0.30 per share.
Take the purchase price ($3.7 million) and divide it by the annual EBITDA ($533,300) and you get the annual EBTIDA deal valuation of 6.9X.
Also of note: Atrion can earn up to $600,000 in additional cash based on various earn-out goals and achievements.
Plurilock Acquires Atrion: Management Insights
In a prepared statement about the deal, Ian L. PatersonCEO of Plurilock, said:
“The transaction represents our third acquisition as a public company and is another step in our mission to acquire accretive cybersecurity and IT assets with excellent customers, capabilities and distribution channels where we can sell our solutions at high margin. to achieve economies of scale. .”
Added Dominique GrillonPresident of Atrion Communications:
“Atrion is thrilled to join the Plurilock and Aurora family, as it provides us with the opportunity to continue working with our long-standing customers and the valued relationships we have cultivated over more than 37 years in business. Additionally, it gives Atrion access to selling Plurilock technology, which addresses some of today’s biggest IT challenges,” said Dominique GrillonPresident of Atrion Communications, Inc.
Plurilock plans to pursue further acquisitions.