FULL DISCLOSURE: This is sponsored content for Plurilock.
Plurilock Security (TSXV: PLUR) is headed for the US. The company this morning indicated it has engaged Clear Street Investment Banking as a financial advisory, in an effort to refine US strategic options.
“Plurilock Security is at the forefront of protecting organizations against evolving cyber threats. By engaging with Clear Street, we aim to explore avenues that will not only bolster our visibility but also attract a wider investor base. We believe that U.S. capital markets and acquisitions strategies better support Plurilock’s growth and valuing the platform properly with growth focused investors who will support it,” commented Plurilock CEO Ian L. Paterson.
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The decision to aim for US capital follows the company building its business around the United States. Presently, 89% of Plurilock’s sales, which amounted to $70.4 million in 2023, is conducted in the United States, with the US government itself being the firms largest customer. The foundation of the firms customer base amounts to numerous US government agencies, which includes Homeland Security, the Department of Defense, and other major agencies.
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Plurilock as of late has also been building building bench strength in the United States, with the recent bolstering of its Industry Advisory Council including prominent Americans, such as Joe Sexton, a former CrowdStrike board member, and Bryan Cunningham, a former White House Lawyer and advisor to Palantir.
From an investment perspective, the appeal for US markets is high as a result of the high multiples being ascribed to cybersecurity names presently. For example, Wiz just turned down a $23 billion transaction with Google that valued the company at a 65x revenue multiple, while eSentire is in the process of being acquired at a 7x revenue multiple. While there is a wide range of revenue multiples being used to determine valuation, the multiples still represent a significant improvement over the 0.55x revenue multiple that Plurilock is presently being valued at.
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The strategic review being undertaken with Clear Street is said to aim to “amplify Plurilock’s growth trajectory and market presence by leveraging the robust opportunities available in the US technology sector.”
Plurilock Security last traded at $0.78 on the TSX Venture.
FULL DISCLOSURE: Plurilock Security is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Plurilock Security. The author has been compensated to cover Plurilock Security on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
