F.Y.I.

CSO Group and xAmplify announce intended merger

xAmplify, an AI and automation systems integrator, and cyber security company CSO Group are merging.

The announcement:

Australian cyber security business CSO Group and xAmplify, Australia’s leading automation systems and artificial intelligence (AI) integrator, today announced that they intend to merge. The merger will create the nation’s largest Australian-owned and operated integrator of AI, cyber security, technology and business automation services, to bring a sophisticated suite of solutions to digitally advance and protect government and corporate clients.

Once complete, the merged business will deliver some of the most innovative and digitally advanced AI, automation and cyber solutions to over 110 enterprise and government organisations across Australia spanning industries such as defence, federal and state government, energy, financial services, health, logistics, retail, construction and mining.

The new entity will be headquartered in Sydney and have a significant national presence with operations across every state and territory, with a combined headcount of more than 160 staff.

Michael Simkovic, CEO and founder of CSO Group said: “The merger of CSO Group and xAmplify will create Australia’s largest home-grown cyber security, AI and automation consulting business, with a gross turnover exceeding AU$100 million annually. We see an enormous market and growth opportunity to disrupt and challenge the traditional large global service provider models.”

“This is a true merger of equals. The integration of the two businesses will create an amplifier effect, enabling us to deliver a new generation of innovative and integrated business solutions with the convergence of cyber security, automation and AI technologies. Ultimately this will bring more intelligence, optimisation and value to our clients, while also building greater Australian sovereign capability and expertise,” he added.

The merger will enable government and corporate clients to access the capabilities of both CSO Group and xAmplify, spanning strategy, governance, risk and compliance, managed security, AI and both technology and business automation services. It will also bring a renewed cyber security lens to provision high performance IT service and sovereign-secure AI technologies.

Wayne Gowland, CEO and co-founder, xAmplify commented: “This merger will create a fully integrated national business that will work across every state and territory, enabling clients to leverage AI, automation and cyber security to deliver greater innovation, efficiency, assurance, and business value. The business and technology worlds are changing rapidly, and our customers are wanting to transform and adopt the next generation of groundbreaking technologies in a safe and secure way. Together, we aspire to create a digitally advanced and protected Australia by helping clients to identify, solve and manage their real-world problems of today, while safeguarding them for tomorrow.”

With the number of cyber attacks increasing exponentially, analyst group Gartner forecasts that Australian organisations will spend more than AU$7.3 billion on information security and risk management products and services in 2024, an increase of 11.5% from 2023. National spending on AI systems will grow to over AU$3.6 billion by 2025, according to the Commonwealth Scientific and Industrial Research Organisation.

The merger is expected to be completed in the second half of 2024.

Source: Kicker Communications

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