Accumuli CEO Gavin Lyons opens up about £6.3m sale of DDoS business to Juniper
The CEO of UK reseller Accumuli PLC (LON:ACM) has described its sale of its Webscreen Distributed Denial of Service (DDoS) mitigation software, Webscreen, to Juniper Networks (NYSE:JNPR) as “a fantastic result”.
“There’s not really a downside to what we’ve done, Gavin Lyons told Channel Pro.
Webscreen was a subsidiary of Boxing Orange, which Accumuli acquired in March 2011. Selling WSL to Juniper for £6.3m creates a healthy 4x return on the firm’s original investment. “It’s an exceptionally good return for our shareholders,” says Lyons (pictured).
Commenting on the reasons behind the sale, the CEO says: “We didn’t the have resources to maintain Webscreen, which was a software developer business trying to build its own channel, and we were a channel business in our own right – the two didn’t go hand in hand.
“Our core competency is being an independent specialist, working with lots of different technologies. It felt after a while, in order to maximise the opportunities for Webscreen, it should be taken by someone who knows how to deliver products on a global scale. That’s why we chose Juniper.”
Accumuli, however, will remain a reseller of Webscreen.
Lyons says the decision to divest the WSL business will allow Accumuli to focus on its core competencies. “Accumuli is an independent specialist in IT security that is focused on expanding the three pillars of our business – technology, professional services and managed services.
“The sale of WSL assets gives us substantial resources to continue growing our market share in the IT security sector by concentrating on what we are good at; identifying and being highly proficient in best of breed security technologies, expanding on our managed security services portfolio, building security intelligence platforms and creating complementary intellectual property along the way.”
Juniper’s security resellers Channel Pro spoke to have received the news positively.
Etienne Greeff, CEO of Juniper security partner, SecureData, believes the move’s a good transaction for both companies: “Accumuli would never have the scale to compete with the likes of Arbor so they needed to find a global player to unlock the value in the product.
“It is [also] a good acquisition for Juniper since they buy a mature product, which while not a market leader, provides good enough DDoS protection. This provides me with some confidence that they take the enterprise space seriously as they are investing in technology with a view to bolster their security offerings.”
“This acquisition reflects Juniper’s desire to have strength in depth in security bringing in best of breed DDoS protection to the portfolio,” adds Robert Gupta, MD at Secon.
“Figures released by the British Retail Consortium suggest that 20 percent of online retailers have suffered serious or very serious disruption due to DDoS attacks in 2011/12, which in addition to the lost revenues can cost the victims an average of £100,000 to repair and restore their systems following the attack. This is sector alone is growing 10 percent year-on-year with $1 trillion globally expected to be spent on line in 2013.
“A timely, welcome and, dare we say, CHARMing addition to the portfolio.”
WSL currently has four full time employees, three in a technical capacity and one in sales and management. All will be transferred in their existing roles to Juniper Networks.