archTIS Boosts ARR to A$21.8M with A$15.7M Spirion Acquisition
archTIS Limited has acquired Spirion LLC’s technology, customers, and employees for A$15.7 million, significantly expanding its U.S. presence and product portfolio in data security. The deal adds A$17 million in annual recurring revenue and brings new cross-selling opportunities across a blue-chip customer base.
- Acquisition price of A$15.7M at 0.9x FY25 ARR
- Pro-forma FY25 ARR increases to A$21.8M
- Adds 38 employees including Spirion’s CEO to archTIS leadership
- Broadens U.S. market reach with 150+ enterprise, education, and government clients
- Capital raising of approximately A$20.5M to fund acquisition and growth
Strategic Acquisition to Boost U.S. Footprint
archTIS Limited (ASX – AR9), a specialist in data-centric cybersecurity software, has announced a transformative acquisition of Spirion LLC, a U.S.-based leader in data discovery and classification technology. The A$15.7 million deal, structured at a multiple of 0.9 times Spirion’s FY25 annual recurring revenue (ARR), is set to materially increase archTIS’ scale and accelerate its expansion in the lucrative U.S. market.
With Spirion’s established customer base of over 150 clients spanning enterprise, education, and government sectors, archTIS gains immediate access to new revenue streams and cross-selling opportunities. This acquisition complements archTIS’ existing award-winning attribute-based access control products, creating a more comprehensive zero-trust data security platform.
Financial and Operational Impact
The combined pro-forma ARR for FY25 is projected at A$21.8 million, up significantly from archTIS’ standalone figures. The acquisition is expected to be immediately revenue accretive, bolstered by Spirion’s A$17 million ARR and a technology stack supported by over A$45 million in prior investment.
To fund the acquisition and support growth initiatives, archTIS is undertaking a capital raising of approximately A$20.5 million. This includes a A$3.5 million placement and a fully underwritten 1-for-3 accelerated entitlement offer. The funds will also support employee retention programs, ensuring continuity and integration of Spirion’s 38 employees, including key executives such as Spirion’s CEO, Kevin Coppins, who will join archTIS’ executive team.
Enhancing Product Synergies and Market Position
Spirion’s advanced data discovery and classification capabilities will integrate with archTIS’ attribute-based access control solutions, enhancing enforcement and compliance features. This synergy is particularly relevant for managing data security governance within Microsoft 365, SharePoint on-premises, and other collaboration tools widely used by enterprise and government clients.
CEO Daniel Lai emphasized the strategic nature of the acquisition, highlighting its role in creating a scaled global leader in data-centric security. The deal builds on archTIS’ recent U.S. Department of Defense contract win, positioning the company to protect sensitive information from corporate boardrooms to military battlefields.
Looking Ahead
Completion of the acquisition is expected by 30 September 2025, subject to customary closing conditions and shareholder approvals. The integration of Spirion’s technology and talent is anticipated to accelerate archTIS’ U.S. market penetration and global product innovation, setting the stage for sustained growth and shareholder value creation.
Bottom Line?
archTIS’ Spirion acquisition marks a pivotal step in its U.S. expansion, but successful integration will be key to unlocking its full growth potential.
Questions in the middle?
- How smoothly will archTIS integrate Spirion’s technology and workforce?
- What impact will the acquisition have on archTIS’ profitability and margins?
- How will archTIS leverage Spirion’s customer base to accelerate cross-selling?
