🧠 Food for thought

Implications, context, and why it matters.

Undisclosed deal size clouds Sekuro’s value and multiple

• Insight Enterprises did not disclose the price. Investors cannot tell if the valuation was distressed or premium. Sekuro’s 2024 Australian Securities and Investments Commission (ASIC) filings list $1.4 million net profit on $57.9 million revenue, while CEO Noel Allnutt reportedly said at its October customer conference that revenue was near $200 million with 30-40% growth.
• Filings can miss context, which clouds analysis. This opacity blocks comparison to CyberCX’s sale to Accenture two months prior, which topped $1 billion.
• If revenue sits near that figure, a 1-2x multiple implies $200-400 million, which matters for Insight’s $5.3 billion (US$3.4 billion) market cap after a 27.6% year to date drop.

Australia’s mid-market cyber consultancies look like roll-up targets for outside buyers

• CyberCX went to Accenture, Sekuro went to Insight, and Fujitsu built a 300-strong team while planning to invest more than $300 million over three years.
• CISO Lens (an executive group of chief information security officers, or CISOs, in Australia) ranks the Big Four behind CyberCX, while Sekuro did not appear in enterprise CISO mentions.
• A middle tier serves small and medium-sized businesses (SMBs) with little brand reach into large enterprises, which makes them candidates for roll-up strategies (acquiring and combining multiple smaller firms).
• Private equity firms and IT channel partners (distributors and resellers) have room to combine independents. Fujitsu’s horizon and Insight’s Asia Pacific push signal appetite for deal making with tighter multiples for holdouts plus premiums for early buyers.