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UK security distributor A-Tek has been acquired by Swedish outfit Cognosec as the firm looks to expand its operations to cover web-based sales of software technologies.
The deal is worth €275,000, which is made up of €44,000 in cash and €231,000 in shares, is being carried out by Cognosec subsidiary Credence Security and should close by the end of Q1.
Bath-based A-Tek was set up in 2009 to take security vendors like AVG and F-Secure to the UK market via the channel and had been planning to add more names to its roster. It recorded reported revenues of £87,000 in FY2016 and EBITDA of £41,600.
A-Tek has positioned itself as a "new age distribution" business, which in essence means it is providing the SME market with hosted security services.
Credence Security will add the A-Tek expertise to its own portfolio, which provides security for data centers, network operation centres, virtualised environments and mobile platforms.
"Through A-tek, Cognosec will be extending its customer base with the addition of web-based digital distribution portals covering existing and new segments of this growing market. Cognosec recognises the expansion of distribution of cyber security software through innovative portal solutions providing products and services with a strong emphasis on the SME markets as our strategic focus," said Robert Brown, CEO of Cognosec.
In response Robert Hall, co-founder of A-Tek Distrribution, said that it would provide the business with more muscle and opportunities to sell into vertical markets and was a positive for its reseller base.
"It will allow the Company to fast track [into areas already targeted by Credence], whilst working together with a globally recognised provider of cyber security excellence to secure additional distribution agreements giving our current and future partners tremendous platforms for future growth, productivity and profitability," he said.