Transaction Solutions International, M&A, Clients Aug 24 2017

Transaction Solutions International (TSN-ASX) acquire leading boutique cybersecurity firm Decipher Works

Transaction Solutions International (TSN-ASX) has now completed the acquisition of Sydney based cybersecurity specialist, Decipher Works Pty Ltd (DWX) with Cadmon Advisory acting as the corporate advisor for TSN.

Transaction Solutions International (TSN) is a technology based company focused on the financial services sector. The company has a 24.89% interest in TSI India, which was formed to create scalable operations in the field of e-transactions and payments in India.

DWX offers cybersecurity protection (such as identity governance, access management, multi-factor authentication, data security, single sign-on), threat detection and security managed services solutions to a blue-chip client base, consisting primarily of banks and financial institutions.

Highlights of the transaction include:

– TSN signs Agreement to acquire 100% of Sydney based cybersecurity specialist Decipher Works Pty Ltd (DWX)
– Long term client base includes Australia’s top tier banks and large corporates
– Total consideration $3.2 million plus net working capital balance, valued at $1.9 million
– Settlement comprising 61% cash and 39% scrip
– Strong Balance Sheet with significant cash and receivables of $2.4m
– Attractively priced at 3.6 times EBITDA (based on acquisition price, net of working capital)
– Earnings accretive, strong fit to TSN’s growth strategy in cybersecurity and complementary to its existing business interests

– TSN intends to use funds on hand to complete the transactio

The chairman of TSN, Mr Gary Foster spoke of the transaction, “I wish to thank our recently appointed Board members especially Mr Jeffrey Lai, for their efforts in bringing this deal to completion, along with our Corporate advisors, Cadmon Advisory, who all played an important role in this tration.”

For any merger and acquisition assistance please get in touch with Cadmon Advisory.

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