Ekinops Expands Its Cybersecurity Portfolio with Olfeo Deal
Ekinops Strengthens Its Cybersecurity Capabilities
Ekinops has announced an exciting move by acquiring Olfeo, a prominent player in the cybersecurity software landscape, particularly in Security Service Edge (SSE) solutions. Based in France, Olfeo specializes in securing Internet access for businesses and has a robust portfolio of offerings that targets the ever-evolving cyber threat landscape. This acquisition positions Ekinops as a leading European provider of Secure Access Service Edge (SASE) solutions, in line with its strategic plan, known as Bridge, aimed at enhancing its core offerings in the telecommunications sector.
The Value of Olfeo's Solutions
Olfeo, founded in 2003, has garnered a substantial customer base of over 500 enterprises and institutions, generating €6.3 million in Annual Recurring Revenue (ARR) in 2024. Their subscription-based model, which includes Software as a Service (SaaS) solutions, has positioned them as a key player in the SSE market. Olfeo's technology incorporates multiple layers of security to provide comprehensive protection for web access, ensuring that businesses can navigate the online world without compromising their data integrity.
Driving Innovation in Cybersecurity
With its existing capabilities in managing critical networks, Ekinops looks toward leveraging Olfeo's innovative solutions for further growth. The combination of Ekinops’ established telecommunications network prowess and Olfeo’s cutting-edge cyber solutions maps out a path toward enhancing their service offerings across Europe and beyond. This partnership embodies a strategic alignment that will address the increasing demands for integrated network security solutions.
Market Insights on Cybersecurity
The market for SSE and SASE solutions is booming, estimated to grow significantly as businesses seek secure, efficient systems to manage digital threats. The SASE market alone is projected to exceed $9 billion by 2025, exhibiting an annual growth rate of about 13%. Ekinops aims to tap into this expanding market by positioning itself strategically within the Unified SASE segment, catering to small and medium-sized enterprises (SMEs), which have unique cybersecurity challenges.
Future Growth and Strategic Direction
This acquisition aligns perfectly with Ekinops' Bridge strategic plan, which is aimed at accelerating its growth trajectory in high-demand market segments. Through this initiative, Ekinops envisions achieving double-digit growth rates and ensuring that a substantial portion of its revenue—more than 30%—derives from Software and Services by 2028. With this merger, Ekinops anticipates that its Software and Services revenue will see a significant boost.
Transaction Details
The acquisition of 100% of Olfeo’s share capital will be facilitated through Ekinops’ holding company, Oscar SAS. The transaction will be fully financed with cash from Ekinops' own funds, including a credit line established for external growth. Following this acquisition, Ekinops expects to maintain a solid financial standing, continuing to possess a positive net cash position post-transaction.
Commitment to Future Endeavors
The management team at Olfeo, including co-founder and CEO Alexandre Souillé, is enthusiastically committed to the merger, ensuring the continuation of their cybersecurity initiatives within Ekinops. According to Souillé, this alliance represents an invaluable opportunity for Olfeo to scale its operations while adhering to its core values of sovereignty and innovation.
Understanding SSE and SASE
Security Service Edge (SSE) integrates security services designed to safeguard networks from various cyber threats like malware, data breaches, and phishing attacks. Unlike traditional security measures that focus primarily on core network protection, SSE strives to provide a more comprehensive defense strategy, adjusting its security functions to where users and devices engage with the network.
When coupled with advanced software-defined WAN (SD-WAN) functionalities, SSE morphs into a Secure Access Service Edge (SASE) architecture. This integrated approach combines robust networking capabilities with stringent security measures, offering seamless protection whether users and devices are located on-premise or remotely.
Frequently Asked Questions
What is the significance of Ekinops' acquisition of Olfeo?
This acquisition enhances Ekinops' cybersecurity solutions, making it a leader in the European SASE market.
How does Olfeo contribute to Ekinops' offerings?
Olfeo offers advanced web security solutions, which will integrate with Ekinops’ existing SD-WAN services to improve network security.
What is the estimated growth of the SASE market?
The SASE market is anticipated to grow beyond $9 billion by 2025, with an average annual growth rate of 13%.
What are the terms of the acquisition?
Ekinops is acquiring 100% of Olfeo's shares, fully financed in cash through its funds and a dedicated credit line.
What will be the impact on Olfeo's management post-acquisition?
Olfeo's management, including its CEO, will remain engaged in driving the cybersecurity initiatives within Ekinops.
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