Cyber safety specialist Family Zone Cyber Safety Limited (ASX:FZO) has signed an agreement to acquire innovative cloud-managed firewall service provider Linewize.
Under the agreement, Family Zone will acquired 100% of the shares of Linewize Services Limited and Linewize Limited for a cash and shares consideration.
Family Zone Managing Director Tim Levy said the acquisition of Linewize, will allow his company to expand further into the education market.
We establish a significant presence in New Zealand, add material new revenue and enhance our technology stack and management capability.
“Most importantly, the Family Zone cyber safety ecosystem is enhanced with some serious strategic technology which will bring massive improvements in our cost structure and services.”
Linewize is the leading provider of cyber security and safety services in New Zealand and this acquisition follows the formation of a successful partnership agreement announced in July 2017.
The company provides an innovative cloud-managed firewall service, specifically developed for the needs of the education sector.
The Linewize platform and service covers user authentication, content filtering, network appliances, telecoms services, BYOD support, network access management and an award winning suite of classroom tools.
Mr Levy said the acquisition will provides Family Zone access to a rapidly expanding network of schools and parents (currently 260 schools and 130,000 students) plus access to world leading technology for schools and experienced executives.
He said it will create strategic opportunities for Family Zone to build out features, transform service levels and achieve order of magnitude reductions in service costs through Linewize’s innovative and world class cloud technology.
Consideration for the acquisition consists of a deposit of $NZ 200,000 in cash, the issue of 9.5m ordinary shares in FZO plus 9.5m performance shares with aggressive growth hurdles at completion.
