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(Sharecast News) - Governance, risk, and compliance (GRC) software provider Acuity RM announced the acquisition of the Rizikon software product on Tuesday, including its intellectual property and customer lists, from the collapsed Crossword Cybersecurity, for £15,000 cash.
The AIM-traded firm said the acquisition was set to enhance its product offerings, and drive material growth in revenue and customer base.
It described Rizikon as an automated third-party GRC software solution that allows organisations to manage supplier compliance by providing risk scorecards and compliance dashboards.
Acuity said those features improved third-party assurance and risk management through secure, standardised systems that increased visibility of supplier risks.
The product generated £0.25m in revenue for its prior owner in the year ended 31 December 2023.
Acuity said the acquisition was expected to significantly strengthen its market position.
In addition to the direct benefits of increased revenue and a broader customer base, the board said the deal would create an opportunity for Acuity to negotiate partnerships with two major organisations, including a leading defence contractor.
Those potential partnerships could expand the distribution of both Rizikon and Acuity's flagship 'Stream' product, offering the potential to materially increase customer acquisition and revenue growth.
"I am delighted to announce the acquisition of the Rizikon software product - it should bring significant additional revenues as well as new customers and partners," said chairman Angus Forrest.
"It also offers opportunities for upsell to current and ex customers of Rizikon as the company seeks to accelerate its growth of Acuity.
"This is the first step in building the business by using a focused acquisition to supplement the organic growth."
At 1144 GMT, shares in Acuity RM Group were down 4.57% at 2.2p.
Reporting by Josh White for Sharecast.com.
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