TXT Group has announced plans to acquire TLogos, a boutique cybersecurity consultancy with 15 employees. The deal, expected to close before the end of 2022, is valued at about 6.6 times annual TLogos EBITDA for 2022.
This is technology M&A deal number 983 that ChannelE2E has covered so far in 2022. See more than 2,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
Cybersecurity Consulting M&A: Financial Details and Valuation Math
About the Buyer: TXT Group, founded in 1989, is based in Milan, Italy. The company has 1,282 employees listed on LinkedIn. TXT Group positions itself as a Global Digital Enabler and a software engineering fir. Key areas of expertise span AI (artificial intelligence), blockchain, cybersecurity, cloud and data analytics.
About the seller: TLogos, founded in 2011, is based in Rome, Italy. The company has 14 employees listed on LinkedIn. TLogos offers IT security in complex environments such as the space industry. Key areas of expertise include risk assessment, penetration testing, identity management and compliance.
Here's the math behind the valuation:
- TLogos expects to generate 2022 EBITDA of roughly €500,000 (roughly US$500,000), and annual revenue of €1.6 million (roughly $1.6 million).
- TXT Group paid €3.3 million to acquire TLogos, which means the deal was valued at about 6.6X annual EBITDA.
TXT Group Acquires TLogos: Executive Perspectives
In a prepared statement about the deal, TXT Group CEO Daniele Misani said:
"TLogos is a highly profitable cybersecurity boutique that expands TXT Group's ecosystem of excellencies. We also foresee synergies with the Aerospace division on the shared customer base. Also, it is strategic forstrengthening HSPI's Digital Advisory skills and markets as it can support rapid growth, which is expected in the short term in this segment. We welcome the managers/partners and collaborators of TLogos who bring great expertise and will contribute to the accelerated and sustainable growth of the TXT Group."
TXT Group has M&A experience. Earlier acquisitions include:
- October 2022: Soluzioni Prodotti Sistemi (SPS) for ICT projects along with IoT and AI expertise.
- September 2022: Ennova for ICT expertise.
- July 2022: DM Management & Consulting for MES/MOM software for factory management.
