Vintcom Technology (Vcom), an IT distributor listed on the Market for Alternative Investment, plans to acquire i-Secure Co for 196.5 million baht, with the aim to capitalise on the growth of cybersecurity spending.
Bangkok-based i-Secure Co is a managed security service provider and works as a security operations centre for 50 enterprise customers, including telecom firms and banking.
"Acquisitions enable us to have higher and faster revenue growth," said Vcom chairman Narong Intanate.
Mr Narong said the acquisition will be completed by October. After the acquisition, i-Secure will continue to operate its cybersecurity services independently.
The deal will help Vcom add new revenue sources to its service business.
Vcom provides services mainly on a project basis, with low net profit, averaging 3-4% of sale revenue. I-Secure typically earns net profit of 7%.
For this year, i-Secure has a revenue projection of over 125 million baht, and expects to reach 300 million in the next three years.
Mr Narong said the market for cybersecurity service in Thailand is worth about 6.7 billion baht, with double-digit growth over the few past years thanks to digital transformation and more investment in cybersecurity by companies.
He is confident i-Secure can support Vcom, which distributes solutions imported from leading global technology products such as security networks, big data analytics and artificial intelligence including facial recognition technology.
In the future, he plans to expand i-Secure to cover neighbouring countries where Vcom has operations, including Myanmar.
Mr Narong said the continued investment in technology to support the digital economy locally and in the region will benefit Vcom.
To date, Vcom's service revenue accounts for 20% of total revenue, while 80% is from product sales. Last year, the company earned about 1.5 billion baht in revenue and projects at least 25% growth in revenue this year.