Defenx in long-term strategic partnership with BV-Tech SpA

Shares in mobile security software company Defenx rose more than 8% after it announced a long-term strategic partnership with BV-Tech SpA, an independent Italian corporate IT and cyber security solutions provider.

The partnership would comprise, in part, a software acquisition by Defenx and cash subscription by BV-Tech. Defenx's directors believed the software deal would significantly enhance the company's product portfolio.

Together with the proposed strategic partnership, they believed this would enable it to penetrate the European corporate market to generate high-quality, recurring revenues in the medium term.

Defenx would acquire a bespoke version of BV-Tech's encrypted voice and messaging software for €2.65m, settled through the issue of 1.98m new shares at 114p each, upon the acceptance by Defenx of the software, which was expected within two months.

There would also be a cash subscription by BV-Tech for 861,666 new shares at 114p each, to raise €1.15m before expenses.

Following the issue of the consideration and subscription shares, BV-Tech would become Defenx's largest shareholder, with a stake of about 24.8% in the enlarged capital.

In a separate announcement, Defenx posted a full-year pre-tax profit of €1.6m, up from a profit of €362,257 a year earlier.

"Defenx is in a strong position to continue its strategy to launch new products, enter new markets and broaden its management team in 2017," said chief executive Adrea Stecconi.

At 14:56 GMT, shares in AIM-quoted Defenx were up 8.41% to 116p each.