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Corero backs into US security outfit Top Layer

Alex Scroxton

Datatec boss Jens Montanana's buy-and-build network security and BPM software business Corero plans to carry out a reverse takeover of Massachusetts-based security solutions developer Top Layer Networks for $15.3m (£9.4m).

The purchase price takes the form of $6.3m through the issue of 9.03 million new Ordinary Shares, $5m in loan notes, $3.9m in cash and $123.5m in deferred consideration.

Top Layer, which already counts UK firms such as lottery provider Camelot among its customers, will henceforth form the core of Corero's nascent network security business, and brings "the core technology for our move into network security systems" and "key intellectual property and a scalable software platform," according to Montanana.

"Corero will now operate two distinct divisions; Top Layer, which will form the nucleus of our security ambitions, and Corero Business Systems, which serves the business and education sector," said Montanana.

The firm, which specialises in intrusion prevention, firewalls and DDOS protection solutions, also gains a stronger foothold in the UK, as well as an AIM listing through Corero.

It made sales of $11.6m in the 12 months to 31 December 2009, split approximately 60-40 in favour of services, and $5.2m in the first six months of 2010.

Additionally, Corero has also announced that chairman Peter Waller is to step down after five years in the post, with Montanana filling his post.


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