The Rhipe Ltd (ASX: RHP) share price has started the month in a positive fashion.
In morning trade, the cloud and technology solutions provider's shares are up 4% to $1.62.
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Why is the Rhipe share price rising today?
The catalyst for the rise in the Rhipe share price today has been the announcement of a new acquisition.
According to the release, the company has entered into binding legal agreements to acquire EMT Distribution (Australia) and EMT Distribution (Singapore) for $11 million in cash. The agreement also includes potential earn-outs of up to $2 million.
The release explains that EMT is an Australian headquartered cyber security distribution specialist. It focuses on sourcing innovative security software vendors and working with channel partners to deliver both on-premise and cloud-based security solutions. These are aimed at protecting companies against cyber security attacks.
It is currently generating $26 million in sales across its operations in Australia, the Middle East, and Asia.
Management notes that the acquisition strengthens Rhipe's presence in security software distribution and will expand its offering to the enterprise market. This provides partners with a full spectrum of security solutions from a wide choice of vendors to help them build their own security portfolio.
Rhipe's CEO, Dominic O'Hanlon, commented: "emt Distribution has an incredible track record in delivering software security products and solutions via their distribution channels. By combining emt's expertise in security with rhipe's reach, we will be able to offer partners across APAC effective solutions to protect against growing threats around cyber security."
"We plan to continue investing in the emt business to support its continued growth, delivering emt's extensive portfolio of vendor security products to rhipe partners, while providing emt partners with access to SmartEncrypt and rhipe security vendor products. We look forward to welcoming the emt team to the rhipe family and leveraging their outstanding skills and expertise, to deliver greater outcomes for our partners and their customers."
