Plurilock Security is acquiring Atrion Communications, a provider of IT consulting and cybersecurity solutions. The purchase price is roughly $3.7 million, or roughly 6.9 times Atrion's annual EBITDA, according to MSSP Alert's calculations.
This is technology M&A deal number 743 that MSSP Alert and sister site ChannelE2E have covered so far in 2022.
Plurilock Security, Atrion Business Backgrounds
Plurilock, based in Victoria, British Columbia, Canada, was founded in 2016. The company, which ias 37 employees listed on LinkedIn, develops Plurilock ADAPT for login MFA (multi-factor authentication) and Plurilock DEFEND for continuous authentication. Plurilock also owns:
- Aurora, a cybersecurity consultancy based in Torrance, California. The business has 109 employees listed on LinkedIn.
- Integra Solutions, an MSP and IT solutions provider based in Ottawa, Ontario, Canada. That business has 16 employees lusted on LinkedIn.
Now, Atrion tucks into the Plurilock family of businesses. Atrion is a network infrastructure and security solutions provider, offering procurement services, professional services and solutions integrations, managed services, and cybersecurity consulting. Atrion is based in Branchburg, New Jersey. The company has 28 employees listed on LinkedIn.
The deal allows Plurilock to expand its geographic footprint across East Coast-American operations.
Atrion Acquired: The Financial Math Behind MSP's Valuation
For the 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 on closing, subject to working capital adjustment;
- $500,000 in cash payable on the date that is 90 days following closing; and
- Nearly 1.3 million Plurilock shares issued at closing and a similar amount issued one year post-closing at $0.30 per share.
Take the purchase price ($3.7 million) and divide it by annual EBITDA ($533,300) and you get the 6.9X annual EBTIDA deal valuation.
Also of note: Atrion can earn up to $600,000 in additional cash based on various earn-out targets and achievements.
Plurilock Acquires Atrion: Executive Perspectives
In a prepared statement about the deal, Ian L. Paterson, CEO of Plurilock, said:
"The Transaction represents our third acquisition as a public company and serves as another milestone in our mission to acquire accretive cybersecurity and IT assets with great customers, capabilities, and distribution channels where we can cross sell our high-margin solutions to deliver economies of scale."
Added Dominic Grillo, president of Atrion Communications:
"Atrion is very excited to join the Plurilock and Aurora family as it offers us the opportunity to continue working with our longtime customers and the valuable relationships we've cultivated over 37+ years in business. In addition, it gives Atrion access to sell the Plurilock technology, which addresses some of the biggest IT challenges today," said Dominic Grillo, President of Atrion Communications, Inc.
Plurilock plans to pursue additional acquisitions.
