Shearwater acquires British data loss protection firm

Shearwater is set to drop a total of £1.7m on GeoLang, which will be settled via the issue of 43.2m shares at a price of 4p each, with an additional 14.4m shares twelve months after the acquisition.

Shearwater, which has also agreed to cover GeoLang's existing debt of around £300,000, claimed that the market for DLP solutions, currently estimated at around $800m, was expected to grow at a 16% compound annualised growth rate over the next three years, leading the group to invest in GeoLang in order to accelerate its go-to-market strategy and become revenue-generating during its first full year within the group.

"For us, GeoLang represents another example of a great British technology business with significant potential to scale," said David Williams, Shearwater's chairman.

Chief executive Michael Stevens said: "Establishing a presence within the DLP market has been an objective since we launched our digital resilience strategy last year.

"GeoLang's innovative, patent-protected technology will underpin our proposition within this rapidly growing sector, and by adding another 'channel first' SaaS business to the group's portfolio, we expect to see the benefits of improved cash generation over the coming years as the business scales in line with the considerable market opportunity we are seeing."

As of 1140 BST, shares had picked up 8.49% to 2.88p.