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July 21, 2024


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Plurilock (PLUR.V) snares another acquisition, continues roll

The computer security freight train that is Plurilock (PLUR.V) just keeps rolling, both in share price accretion, new contracts signed, and acquisitions.

The latest of the latter comes in today’s annnouncement the company will acquire the assets of CloudCodes Software, an India-based cloud security provider with a global customer base.

Since 2011, CloudCodes has provided innovative cloud security SaaS solutions for protecting email and group collaboration platforms, offering single-sign-on (SSO), multi-factor authentication (MFA), and cloud data loss prevention (DLP) solutions.

CloudCodes earned approximately CAD$576k in product revenue for its year ended March 31, 2021, which isn’t gamechanging revenue in North American terms, but adding the CloudCodes product suite and customer base to Plurilock will help the parent company grow, and adding Plurilock’s solutions and customer base to CloudCodes will allow it to go, frankly, bonkers.

Following the Acquisition, CloudCodes’ existing customers will have access to a larger public organization with adequate financial resources, deep security, IT, AI capabilities and expertise, and the Company’s world-class sales team while Plurilock will gain a larger market presence in the international cybersecurity space and enter the growing [Cloud Access Security Broker] segment.

In addition, Plurilock, through its Indian subsidiary, Plurilock Security Private Limited (“PSP”) will obtain a technical product team and a new office in Pune, India to complement its office in Mumbai, India. [..] As a result, it is expected that the Acquisition will accelerate Plurilock’s sales growth and cement the Company’s position in the growing zero trust market.

The terms of the deal are most agreeable, with PLUR handing over the equivalent of 3 years of CloudCodes revenue to ink the deal.

Pursuant to the terms of the Agreements, the Company has agreed to pay CloudCodes aggregate consideration of US$1,700,000 payable as follows: (i) US$1,000,000 in cash payable on closing; and (ii) US$700,000 in common shares of Plurilock (the “Consideration Shares”), less any deferred revenue. The Consideration Shares will be issued at a deemed price of C$0.59 per share and will be placed in escrow for 18 months to satisfy any indemnification obligations to the Company.

Plurilock has now acquired two companies this year, and raised $5m to expand its sales team while adding to its patent portfolio. New contracts have been flying in and, as many of them are government based, they bring about consistent revenue with lengthy terms.

Plurilock (PLUR.V) cybersecurity firm raises $5m, ramps up direct sales

Plurilock Security (PLUR.V) Expands Patent Portfolio With Two New US Patent Applications

Plurilock finds itself in a hot sector, and its technology of using keystrokes and online behaviour to verify identity continually rather than focus on traditionally leaky concepts like passwords and single-sign ons has proven effective for high level clients.

Chart-wise there’s a lot to like here.

Consistent trading volume, solid upticks in price, and an executive team that has proved to Big Govt that its trustworthy, and that its product works. The fact Plurilock has no trouble raising money is noteable, and that it has an ongoing plan for using that money to build out its client base and product offerings is exactly what you’d hope to see.

I own this stock and have done well from it. In a market that sometimes seems to be chasing memes more than company builders, Plurilock has had little trouble proving its worth. This is a ‘big I investment.’

— Chris Parry 

FULL DISCLOSURE: Plurilock is an Equity.Guru marketing client

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