Pemba picks up half ownership stake in cybersecurity firm ctrl:cyber
Pemba Capital Partners has continued its push into the professional services sector with the purchase of a 50 percent stake in cybersecurity advisory and services provider ctrl:cyber.
Ctrl was established in Melbourne in 2017 by CEO Steve Williams, and has since grown to a team of more than 60 specialists providing a range of services covering advanced 24/7 threat monitoring, penetration testing, and governance, risk & compliance advisory for more than 300 clients.
Pemba, which gears its investments towards high-growth, founder-led businesses, has been cultivating its relationship with Ctrl since shortly after its founding, and cited the firm’s commitment to innovation, high-performance culture, and unique focus on high-value subscription services as being of particular attraction.
“We first met Pemba seven years ago, and from the very beginning their founder-led, buy-and-build approach resonated with our own values,” Williams said. “It’s rare to find a partner that not only understands your vision but has the patience and trust to wait for the right moment to join forces.”
Williams told the AFR that with Pemba’s backing, Ctrl was now aiming to become the leading cybersecurity provider in the A/NZ region within three years, with the initial focus on expanding into Sydney and Perth and over to New Zealand and a broader goal of raising the proportion of its subscription-based revenues from 50 percent to 70 percent within two years.
“With like-minded executive leadership teams, we will take top-spot in the market,” the new partners declared in a press release. “Combining Pemba’s previous success within cyber and Ctrl’s expertise crafted over a decade-long period, we will not only accelerate growth via a targeted acquisition strategy but enhance organic growth through compounding an already successful strategy.”
Pemba Capital Partners
Pemba has reasonable grounds to feel confident in its ambitious bid to conquer the Australian cyber market, as Ctrl isn’t the private equity firm’s first foray into the sector, having previously merged its assets Shelde and Revolution IT to form Ampion in 2020 – which it then on-sold to technology consulting giant Wipro for almost US$120 million the following year.
Meanwhile, the firm has continued to target the professional services sector over the past twelve or so months, including an investment into ESG management consultancy Rennie at the end of 2023 along with its double strike for Victorian accountancy Stannards and water consultancy Sequana in September. Pemba-backed defence-tech firm Aurizn also recently acquired the Australian arm of Pacific Aerospace Consulting.
The M&A arms of Alvarez & Marsal, Ernst & Young and L.E.K. Consulting featured among Pemba’s advisors on its latest deal, while Ctrl was supported by DFK Nugents and KHQ Lawyers and business advisers.
