Sattrix Information Security Limited (SISL) has announced a strategic move to acquire a 100% stake in Sattrix Software Solutions Private Limited (SSSPL) through a share swap arrangement. The board of directors approved this significant transaction, which is set to reshape the company's position in the software development and cybersecurity sectors.

Key Highlights of the Acquisition

• Share Swap Ratio: SISL will issue up to 45,48,379 equity shares at a swap ratio of 379:1, meaning 379 shares of SISL will be exchanged for every 1 share of SSSPL.
• Target Company Profile: SSSPL operates in software development and consulting services, with a focus on e-commerce, retail, education, and healthcare sectors.
• Financial Performance: SSSPL reported a turnover of Rs. 301.68 lakhs.
• Authorized Capital Increase: SISL's board approved raising the authorized share capital from Rs. 7.50 crore to Rs. 30.00 crore to facilitate the acquisition.

Impact on Shareholding Structure

Post-acquisition, the shareholding structure of SISL is expected to change significantly:

Strategic Rationale

The acquisition is aimed at enhancing SISL's capabilities in software development and consulting services, complementing its existing cybersecurity offerings. This move is expected to create synergies and expand SISL's service portfolio in the rapidly evolving tech landscape.

Transaction Details

• The deal is classified as a related party transaction, as promoters are directors/shareholders of SSSPL.
• Shareholder approval will be sought through postal ballot and e-voting.
• The acquisition is expected to be completed within 12 months of member approval.

Regulatory Compliance

SISL has engaged various professionals to ensure compliance with regulatory requirements:

• Valuation reports from 3Dimension Capital Services Limited (Merchant Banker) and Mr. Suman Kumar Verma (Registered Valuer)
• Mr. Govil Rathi appointed as scrutinizer for the e-voting process
• Central Depository Services (India) Limited engaged for facilitating e-voting

Outlook

This strategic acquisition positions Sattrix Information Security Limited for potential growth in the software and cybersecurity domains. The integration of SSSPL's expertise is expected to enhance SISL's service offerings and market presence.

Sattrix Information Security Limited (BSE: 544189) has taken a significant step in its global expansion strategy by officially registering a new joint venture in the United States. The company announced the formation of World Tech Nexus LLC, headquartered in Irvine, California, which aims to provide IT and cybersecurity solutions and services for clients in the U.S. and globally.

Strategic Partnership

The joint venture brings together three key players in the cybersecurity and IT solutions space:

1. Sattrix Information Security Limited
2. World Tech Edge PTE. LTD. (formerly known as RF TrustCo PTE LTD)
3. Ali Yavari

This collaboration is set to leverage the strengths of each partner to establish a strong presence in the U.S. cybersecurity market and further Sattrix's goal of becoming a global leader in the industry.

Focus Areas

World Tech Nexus LLC will concentrate on several key areas within the U.S. market:

• Selling, reselling, and distributing specialized IT and cybersecurity solutions
• Digital transformation
• Managed services
• Compliance
• Enterprise cybersecurity solutions

Leadership Expertise

The joint venture benefits from the extensive experience of its co-founding team:

• Mohammad Mobasseri and Richard Rundle, co-founders of World Tech Edge PTE LTD, bring decades of experience in IT and cybersecurity distribution across the Middle East and Asia-Pacific regions.
• Their expertise in strategic channel empowerment and regional insights is expected to play a crucial role in positioning World Tech Nexus LLC as a key player in the North American cybersecurity landscape.

Global Expansion Strategy

This move aligns with Sattrix's long-term vision of evolving into a multinational corporation. The company, founded in 2013, has already established operations across India, the USA, the Middle East, and Malaysia. The new joint venture is expected to strengthen Sattrix's foundation and accelerate its journey to become a trusted global cybersecurity partner.

About Sattrix Information Security Limited

Sattrix, established in 2013, is a globally recognized cybersecurity solutions provider. The company offers end-to-end, customer-centric services, delivering agile, cloud-based, and on-premise solutions to help enterprises protect digital assets, ensure compliance, and maintain business continuity.

The company's mission, "Removing the Risk from the Universe," is reflected in its name: Sattrix is derived from Satt (Universe), Ri (Risk), and X (Extenuation). This underscores Sattrix's commitment to eliminating cybersecurity threats through a combination of cutting-edge technology and deep expertise.

As the cybersecurity landscape continues to evolve, Sattrix's expansion into the U.S. market through World Tech Nexus LLC positions the company to address the growing demand for robust IT and cybersecurity solutions on a global scale.