Deal closed: April 2019
Oasis M&A mandate: Sell-side, Advisory
Sub-sectors: Security Software
Background & motivation
Rivium is a specialist in the enterprise security solution Splunk, providing consulting, implementation and management services. It has high profile customers in the government and private sectors.
Oasis Advisory worked with Rivium over a period of four years at the board and operational level, providing in-depth advice on business strategies to address the significant challenges posed by changing market conditions in the IT hardware, software and services industry.
During the initial stages of working as Rivium’s advisor, Oasis Advisory helped the business owners develop business strategies to address challenges posed by the changing market conditions. This business plan, along with Oasis’ ongoing operational advice, allowed Rivium to overcome inherent issues in the IT services industry and deliver growth, maximise revenue, and secure a predictable future.
The owner of Rivium was looking to simultaneously de-risk his position whilst expanding the business. Through our advisory work, Oasis recommended a merger with a company that had an existing sales team which could be leveraged. This would deliver value to the business whilst giving the owner flexibility.
The cybersecurity sector is characterized by generally inflexible and risk-averse professional services firms. Part of the challenge for Oasis M&A was to demonstrate the reliability of Rivium to potential acquirers.
As a result of the advisory work done by Oasis Advisory over the preceding years, Oasis M&A was able to clearly articulate to potential acquirers the value in the Rivium business. By intelligently canvasing businesses with the appropriate verticals, Oasis M&A was able to attain several offers for the Rivium business.
The acquirer, Tesserent (ASX:TNT,) is an Australian listed company with a strategy of making acquisitions that enable them to deliver and end-to-end cybersecurity services to clients.
Oasis M&A was able to negotiate a favourable deal structure with a motivated acquirer and unlock the value in Rivium’s business which had been built over the previous four years.
“From the outset, guidance started with Oasis providing in-depth advice on business strategies to address the significant challenges posed by changing market conditions in the IT hardware, software and services industry,” explained Rivium CEO Robert Silver. ”The outcome was a well-developed business plan for the future.”
“Since then, we’ve not looked back. Oasis Advisory’s ongoing operational advice in the business has helped us fine-tune these strategies to maximise revenue, profitability and shareholder value to deliver a more predictable future.”