Plurilock to expand behavioral biometrics cybersecurity reach with Aurora Systems acquisition
Plurilock is acquiring Aurora Systems Consulting, a U.S.-based cybersecurity solutions provider, to extend the reach of its behavioral biometrics and continuous authentication technologies to major U.S. organizations.
Aurora will sell Plurilock’s behavioral biometrics and identity assurance solutions to its network of clients, which the companies say will accelerate the growth of Plurilock’s high-margin software products within regulated industries like healthcare, finance and defense.
Aurora has more than 140 clients among tier-1 organizations in the federal government, state, local and education government agencies, and commercial firms, according to the announcement. In 2020, Aurora reported revenues of $28.1 million with a gross margin of $1.4 million. Aurora clients include the U.S. Department of Defense, Air Force, Navy, NASA, the Treasury Department and Army. It will continue to operate as a wholly-owned subsidiary of Plurilock under the guidance of the parent’s management team.
With the acquisition, Plurilock gains a professional services team, an office on the U.S. West Coast, a larger market presence in cybersecurity and an office in India for bidding on government contracts.
“The acquisition of Aurora will represent a significant milestone in Plurilock’s development and in our M&A strategy of acquiring attractive assets that have the ability to scale,” comments Ian L. Paterson, CEO of Plurilock. “With an established customer base of top-tier organizations, the Aurora acquisition provides us with an opportunity to integrate our higher margin cybersecurity software into their existing solution offering in order to increase sales while expanding their overall margins. We expect this acquisition will rapidly advance our growth initiatives and we are looking forward to working with Philip de Souza and his impressive team as we continue to aggressively build our company.”
The deal represents Plurilock’s first acquisition for the company since becoming listed on the Toronto Stock Exchange through its reverse takeover of Libby K.
“We are pleased to join Plurilock in delivering cybersecurity offerings to North American organizations across key industry verticals,” says Philip de Souza, founder and president of Aurora. “By incorporating Plurilock’s cutting-edge technology platform into our product offering, our clients will receive a more robust and comprehensive identity authentication solution, which has been adapted to provide safe and secure remote work access to employees working from home.”
Under the deal, Plurilock acquires all outstanding shares in Aurora for an aggregate consideration of $1.5 million in cash and Plurilock shares, some of its as a performance-based earnout. Closing consideration shares will have a deemed price of C$0.54 (US$0.43), with the earnout shares guaranteed a minimum price of C$0.30 ($0.24).
The closing cash payment will be drawn from the C$5.1 million ($4 million) in funds Plurilock raised earlier this year.
The acquisition is expected to close imminently.
Plurilock also singed a North American distribution deal for its continuous biometric authentication technology with X10 Networks in January.
Cloud infrastructure transition complete
Plurilock also announced the completion of its transition to high-availability cloud infrastructure to maintain reliable delivery of its behavioral biometrics for logins, continuous authentication and threat detection.
The company began rolling out its redesigned infrastructure with a number of performance, stability, and high-availability features in December 2020, and it how now reached production deployment for all customers.
Plurilock’s cloud now leverages AWS capabilities including Elastic Kubernetes Service container management, RDS Aurora and AWS Cloudwatch to automate horizontal scaling and failure recovery.
“The completion of our next-generation cloud rollout represents a significant leap forward for Plurilock,” says Paterson. “This feature will enable us to serve large, fast-moving enterprises that have significant security and compliance requirements. We could not be more excited to achieve full deployment and to see our new cloud engine in operation.”
acquisitions | behavioral biometrics | biometrics | cloud services | continuous authentication | cybersecurity | digital identity | identity verification | Plurilock