The acquisition will represent one of Spirit’s nine acquisitions in the past 18 months, all which the company says support organic growth and the onboarding of new service offerings.

“The acquisition positions Spirit to take a greater share of the Corporate and Government markets in line with its expansionary vision as Spirit Technology Solutions, and growth strategy for FY21,” said Spirit in a statement on Wednesday.

Spirit (ASX:ST1) describes Intalock as “one of Australia’s leading Managed Cyber Security Services firms, which offers a full range of advisory, technical services, software licensing and managed services and a market leading Security Operations Centre (SOC) providing 24/7 monitoring, technical services and support”.

“After an extensive market review of assets in the Cyber Security space - Intalock was chosen as the foundational asset for Spirit to enter the Corporate & Government segments,” says Spirit in its statement.

“Intalock will be used two ways, firstly as entry into a new segment and secondly, its range of Cyber products and services will be sold into the existing Spirit portfolio. The Cyber Security range of services will complete the Spirit range of IT & Telco bundled products (mobiles to be launched in Q3).

“In FY20 Intalock generated revenue of $23.6m and normalised EBITDA of $2.3m. This revenue base is largely recurring with 80% of FY20 revenue generated from multi-year managed service agreements and repeat clients.

“Intalock’s customer base includes large organisations spanning Financial Services, Healthcare, Federal and State government, Education, Property and Heavy Industry.”

“This acquisition embodies our vision for Spirit Technology Solutions and growth strategy for FY21 – to provide a complete suite of modern IT and Telco Services that can be scaled to meet the needs of Australian businesses, from SMB into Corporates,” said Sol Lukatsky, Spirit Technology Solutions Managing Director.

“Cyber Security Services are now a fundamental risk management requirement for any organisation and is a critical defence mechanism for all our existing and future customers across their IT infrastructure and software layers.

“Cyber Security bundled with our range of Data, Cloud and Voice services is the modern product range Spirit is becoming a leader in.

“The Intalock acquisition brings a highly sophisticated Cyber Security offering. A number of esteemed Cyber Security leaders from Intalock will join Spirit, along with a blue chip customer base under the Spirit umbrella.”

Lukatsky said the acqisition of Intalock propels Spirit into a new segment of the market and “positions us as a credible contender for market share in the enterprise and government segment and enhances the Cyber Security offering for our existing customers.”

Julian Haber, CEO of Intalock said: “We couldn’t be prouder and more excited to join Sol and the Spiritteam. Their 2021 strategy for Spirit Technology Solutions is very unique and we can’t wait to help Spirit scale quickly as Spirit shareholders.

“We’re already working on a number of large Corporate opportunities together.”

On completion of the acquisition, Spirit will issue the completion shares at a deemed issue price of $0.38 (38 cents) per share, with the shares escrowed for 12 months from completion date - with the deferred consideration amount and any potential earn-out components to be paid in cash “at the relevant time”.

 The cash component will be paid from Spirit’s cash reserves and CBA debt facility.