- CloudCodes is an award-winning cloud access security provider with a global customer base
- Acquisition of CloudCodes enables Plurilock to gain access to new zero trust cybersecurity solutions and enter the cloud access security market
- This transaction represents Plurilock’s third acquisition to date
VANCOUVER, BRITISH COLUMBIA—Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) and related subsidiaries (“Plurilock” or the “Company”), an identity-centric cybersecurity solutions provider for workforces, is pleased to announce that it has completed the previously announced acquisition of certain assets of CloudCodes Software Private Limited (“CloudCodes”), an award-winning cloud access security broker (“CASB”) based in India (the “Acquisition”) pursuant to asset purchase agreements dated October 21, 2021, as amended on November 30, 2021 and August 26, 2022.
With a global customer base, CloudCodes has been a leading provider of unique cloud security SaaS enterprise solutions for protecting email and group collaboration platforms as well as other cybersecurity products including single-sign-on (SSO), multi-factor authentication (MFA), and cloud data loss prevention (DLP) solutions. For its year ended March 31, 2022, CloudCodes generated approximately C$572,000 in product revenue.1
The acquisition enables PlurilockTM to expand its product line, as the Company intends to offer CloudCodes’ CASB solution as an early-access product named Plurilock CLOUD, providing its customers with a cost-effective cloud security solution. The Company expects CLOUD to initially integrate with, and to later absorb, its existing Plurilock ADAPT login authentication product, providing a path to low-friction, high-security SSO and CASB solutions with system-wide, real-time behavioral biometric identity confirmation.
In addition, the Acquisition is expected to be beneficial for CloudCodes’ team as they will be able to leverage Plurilock’s financial resources, deep security, information technology, AI capabilities and expertise as well as its top-tier sales team to optimize their operations.
Furthermore, the Company’s Indian subsidiary, Plurilock Security Private Limited, which is based in Mumbai, India, has obtained a technical product team and a new office in Pune, India.
Overall, the Acquisition is expected to not only drive Plurilock’s sales growth but also, allow the Company to enter the CASB market and gain a larger footprint in the global zero trust cybersecurity industry.
“We are delighted to have completed the acquisition of CloudCodes,” said Ian L. Paterson, CEO of Plurilock. “Given CloudCodes’ award-winning CASB solution and international customer base, this acquisition bodes well for our growth strategy as we intend to secure new technology assets to offer more advanced zero trust solutions to our customers and expand our market presence within the global cybersecurity industry. We look forward to welcoming CloudCodes’ staff and integrating their innovative products into our robust technology portfolio.”
“This transaction represents a major milestone for CloudCodes as we will be part of a fast-growing organization that will supply our unique CASB products to the North American market,” said Debasish Pramanik, co-founder of CloudCodes. “We are excited about the new opportunities that await us, and we look forward to working with the Plurilock family of companies in developing the next generation of cybersecurity solutions.”
Material Terms of the Acquisition
In connection with the Acquisition, the Company paid CloudCodes aggregate consideration of approximately US$1,451,148 payable as follows: (i) US$700,000 in cash payable on closing; (ii) a promissory note of US$300,000 maturing on November 15, 2022; and (iii) 992,755 common shares of Plurilock (the “Consideration Shares”) at C$0.59 per share. The Consideration Shares were placed in escrow for 18 months to satisfy any indemnification obligations to the Company. The Acquisition is subject to receipt of the approval of the TSXV.
CloudCodes is an internationally based Cloud Security SaaS platform company, offering a product that protects email and group collaboration platforms like Microsoft 365 and Google Workspace, while providing SSO, MFA and DLP functionality.
Plurilock provides identity-centric cybersecurity for today’s workforces. The Plurilock family of companies enables organizations to operate safely and securely while reducing cybersecurity friction. Plurilock offers world-class IT and cybersecurity solutions through its Solutions Division, paired with proprietary, AI-driven and cloud-friendly security through its Technology Division. Together, the Plurilock family of companies delivers persistent identity assurance with unmatched ease of use.
For more information, visit https://www.plurilock.com or contact:
Ian L. Paterson
Chief Executive Officer
Chief Financial Officer
This press release may contain certain forward-looking statements and forward-looking information (collectively, “forward-looking statements”) related to future events or Plurilock’s future business, operations, and financial performance and condition. Forward-looking statements normally contain words like “will”, “intend”, “anticipate”, “could”, “should”, “may”, “might”, “expect”, “estimate”, “forecast”, “plan”, “potential”, “project”, “assume”, “contemplate”, “believe”, “shall”, “scheduled”, and similar terms. Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions, and other factors that management currently believes are relevant, reasonable, and appropriate in the circumstances. Although management believes that the forward-looking statements herein are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Plurilock’s business. Additional material risks and uncertainties applicable to the forward-looking statements herein include, without limitation, the impact of general economic conditions, the success of the Company in obtaining new or extended contracts or orders; the Company’s ability to maintain existing customers or develop new customers; the Company’s ability to successfully integrate acquisitions of other businesses and/or companies or to realize on the anticipated benefits thereof; and unforeseen events, developments, or factors causing any of the aforesaid expectations, assumptions, and other factors ultimately being inaccurate or irrelevant. This list is not exhaustive of the factors that may affect the Company’s forward-looking statements. Many of these factors are beyond the control of Plurilock. All forward-looking statements included in this press release are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this press release are made as at the date hereof, and Plurilock undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result
of new information, future events, or otherwise, except as may be required by applicable securities laws. Risks and uncertainties about the Company’s business are more fully discussed under the heading “Risk Factors” in its most recent Annual Information Form. They are otherwise disclosed in its filings with securities regulatory authorities available on SEDAR at www.sedar.com.
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Source: 1CloudCodes management prepared and unaudited