Fasoo [KOSDAQ:150900], a South Korea-headquartered data-centric security company, considers technology buys, CTO and COO Ronald Arden told Mergermarket.
Acquisitions of companies with artificial intelligence tools or with technologies that could further strengthen Fasoo’s offering in its core sectors of manufacturing, financial services and healthcare could make sense, the executive said.
The KRW 86bn (USD 65m) market cap company would consider small as well as established companies in several locations including the US, Arden said.
The market is consolidating and Fasoo receives approaches from companies for sale, he said. He added that deals will be opportunistic as Fasoo is not actively scouting the market for targets.
Fasoo is favouring partnerships for now, but Arden said that if they work, they could evolve in acquisitions.
Two years ago, Fasoo analysed an acquisition candidate in the US but in the end, decided against the deal. He added that it previously acquired a consulting company in Korea. The company acquired Sp Ace, a South Korean information security and consulting company, at KRW 2.5bn (USD 2m) in April 2016, as announced. Fasoo worked with an undisclosed M&A advisor in the past but has not mandated any advisor at this stage, he said.
The financing of potential deals will depend on their size and the executive does not exclude the company tapping private equity investors for the financing.
Fasoo is focused on accelerating its go-to-market strategy through partnerships in North America and EMEA, Arden said. The company is interested in partnering with distributors and with OEMs (Original Equipment Manufacturers) to integrate its technology, he explained.
On 28 August 2023, Fasoo announced a strategic technology partnership with Dubai-based CyberKnight as a value-added distributor (VAD) for its expansion in the Middle East. On 5 September 2023, it announced a partnership with Egnyte, a secure platform for content collaboration and governance, to simplify data governance.
Fasoo, formerly known as Fasoo.com, provides unstructured data security, privacy, and enterprise content platforms to protect, control, trade, analyse and share critical business information securely. It has more than 2,000 customers and millions of users in more than fifty countries, according to its website. In June the company presented its Unified Data Security Platform that helps organizations maintain data security and privacy in an environment with remote and hybrid work without compromising productivity, according to a press release.
The company has approximately 300 employees, of which 12 are in the US, Arden said. He plans to double the team in the US in the next year. The R&D is in Korea, he added.
Founded in 2000, Fasoo established its US headquarters in 2012. It generated revenues of KRW 44bn (USD 33m) and operating incomes of KRW 5.2bn (USD 3.9m) in 2022, 4.7% up and 23% up year on year, according to its annual report.
Asia Pacific is the largest revenue contributor, but the company expects strong growth from the North American and EMEA markets going forward, he noted.
