SecureData hungry for growth

By Kimberly Guest for SecureData

Johannesburg, 09 May 2008

JSE-listed SecureData is eyeing various areas for expansion, according to company COO Brett Parker.

Parker explains the IT security specialist is continually evaluating opportunities to grow and strengthen its portfolio and expand its presence into regions of interest.

"The local security market is still quite immature; some of the products and services we offer are only two to three years old. Today, we believe we have a comprehensive offering, but the fact is things emerge overnight which we need to consider adding to our portfolio," he comments.

This means the company is continually eyeing new vendors to add to its product offerings and niche security players for acquisition.

"We are not looking at acquisitions as a way of fuelling growth; we don't believe that is necessary. However, we are looking at purchases, which could enable us to ensure we have the best security services offering available. Our aim is to offer a total security portfolio; sometimes we can do this by adding vendors, at other times we need to buy businesses that have those skills," rationalises Parker.

Out of SA

There are also several opportunities for geographic expansion, says Parker.

SecureData CEO Dean Brazier is currently in the UK orchestrating an acquisition worth around R210 million, which would give the company an entry into the European market. This is proceeding fairly well, with Parker estimating Brazier will relocate to the UK in about June this year.

Additionally, its Africa strategy is working "very well", states Parker.

"Our African strategy has been based on the premise of growing the business in a responsible manner. You have to be smart in Africa, so we've taken a partner-led approach. Rather than set up a direct presence immediately, we have built-up our channel and invested in those guys to get them up to speed."

SecureData now has 58 African resellers, of which eight are "top players", says Parker. If the company were to set up a direct presence in another African country, it would probably be through the acquisition of one of its top partners. At this stage, there is nothing on the cards though, warns Parker.

He admits the company is eyeing Israel and the Middle East as potential growth opportunities.

"Again we have nothing on the cards, but we are interested. These regions are very security conscious to the point of being almost paranoid about data security. The focus though would be on being smart and we have time. I would say it's a long- to medium-term plan."