Cork cybersecurity firm prepares for UK listing through €39m reverse takeover

Deal would allow Smarttech avoid the process of an initial public offering

Ronan Murphy of Smarttech247 said the public listing would enable them to continue to drive the business forward "to the next level." Picture: Michael O'Sullivan

Cork cybersecurity firm Smarttech247 is set to be listed on the London Stock Exchange's Alternative Investment Market (AIM) if a €39m deal with Conduity Capital is completed.

Headed by Ronan Murphy, Smarttech247specialises in threat detection, security monitoring and incident response to combat security intrusions for companies and has offices in Cork, United Kingdom, Romania, Poland and the US.

For the period ended 31 July 2020 last year, Smarttech247 reported audited profits before taxation of €829,000, revenues of €4.8m and had net assets of €712,084.

In an announcement, Conduity said it has entered into a non-binding agreement to work towards the possible acquisition of Smarttech247 for a total consideration of £33.5m (€39.4m). If approved the acquisition would be classified as a reverse takeover (RTO) allowing them to become a publicly listed company without going through the process of an initial public offering (IPO).

"We are very pleased to have been introduced to Conduity by our advisers, Fortified Advisory, as a potential party to help achieve a listing for Smarttech247 via a RTO," Ronan Murphy said.

"We are therefore very much looking forward to working with the Board of Conduity towards the completion of the transaction which, I believe, will enable us to continue to drive the business forward to the next level.

"We believe that the Smarttech247 business is well placed to become a global leader in the automated managed detection and response space. We have a proven track record, strong revenues and growth plans and a fantastic book of clients and we believe that working now with Conduity will help us to achieve our business goals."