Enterprise security firm Aurionpro Solutions said it would sell its cybersecurity business to Austin-based software company Forcepoint LLC, USA for $9.6 million (about Rs 71 crore).
The sale of Cyberinc comes after excessive delays in some of its large deals. “It is disappointing to exit at a low value after all these years,” said Paresh Zaveri, chairman and managing director of Aurionpro.
"On balance, we will have more positives out of this; most importantly we have the albatross off our back after this divestment," he added.
Zaveri said that it was in the best interest of the company to accept the deal.
Aurionpro formed Cyberinc after merging Silicon Valley-based startup Spikes Security with its enterprise security division. It acquired Spikes for an undisclosed sum in 2016.
Aurionpro said cash proceeds from the deal will help its plan to become debt-free sometime after the second quarter this year. The deal will also help its balance sheet to significantly improve key performance indicators in the coming quarters.
“With all business units having a strong outlook, we expect the beginning of a new chapter of a long period of healthy and sustained growth for Aurionpro in terms of sales, profitability and free cash flows,” the company said.
Founded in 1997, Aurionpro claims to be a technology products and solutions provider. It has operations in 14 countries, with more than 1,370 employees.
Its shares were currently trading 6.86% higher at Rs 170.50 on the National Stock Exchange.
Forcepoint is a software company that understands behaviour and adapts security response and enforcement to risk.