Crossword Cybersecurity acquires SaaS platform provider Threat Status

Software company Crossword Cybersecurity has acquired threat intelligence company Threat Status in a deal that values the business at roughly £1.52m.

Crossword said on Monday it will pay an initial cash payment of £500,210 for Threat Status, which owns cloud-based software-as-a-service credential breach platform Trillion, while a cash payment of £281,758 and £171,942 in stock will follow on the first anniversary of the transaction and on the second anniversary, it will make a further cash payment of £125,000 and £450,000 in stock.

The AIM-listed firm highlighted that acquisition of Threat Status takes its portfolio to five cyber security offerings, alongside its cyber security consulting and managed services offerings.

For the 12 months ended 31 March, Threat Status made a loss of £54,864 and had net assets of £75,586. However, Crossword added that Threat Status was reaching breakeven, with 90% recurring revenue.

Chief executive Tom Ilube said: "Crossword is pleased to incorporate Trillion and Arc into its product suite, completing our aim of having five products in the market by the end of 2022 and adding over twenty new recurring revenue clients.

"This is our third acquisition in less than a year and shows the extent of our ambition to provide a portfolio of subscription-based, enterprise-class products and services."

As of 1005 GMT, Crossword shares were up 1.59% at 32.0p.