Cybersecurity company Intercede has reported strong growth and the acquisition of Bracknell-based Authlogics.
Intercede, headquartered in Lutterworth, Leicestershire, specialises in digital identities, derived credentials and access control for the mobile-first world.
Its revenues for the six months ended 30th September 2022 totalled £6.1 million, around 23% higher than last year.
The firm, which has offices in the US, has cash reserves of £7.9m – and no debt – following the payment of a £2m initial consideration for Authlogics, adjusted from £2.5m after net debt and working capital adjustments.
Founded in June 2015, Authlogics is a multi-factor authentication and password security management software vendor which services more than 50 customers with 44 annual recurring software contracts across the finance, government, defence and healthcare sectors.
There could be a further £3m payment for Authlogics, which primarily sells into the Middle East through a blue-chip global partner network, depending on earnout conditions.
In the year ended 30th June 2021, Authlogics made a small profit after tax of £8,000. Whilst the acquisition is primarily seen as an IP deal, it has around £500,000 annual recurring revenue.
“The acquisition of Authlogics enables us to deliver on the strategic vision that we have shared with investors of addressing the entire authentication pyramid,” said Klaas van der Leest, CEO of Intercede Group.
“We believe that the addition of the Authlogics products will allow us to support our customers and prospects wherever they are in their authentication journey, and to embrace a wider set of use cases. The deal also increases our recurring revenue base.
“We are delighted to welcome the Authlogics team to the group, along with their customers, partners and distributors.”