Absolute® Software Corporation, a Vancouver-based provider of firmware-embedded, persistent endpoint security and management solutions, provided an update on business growth plans. With the recent announcement of Absolute Manage 6.1.2 supporting OS X 10.8 Mountain Lion and the soon to be released Windows 8, as well as providing mission critical governance, risk management and compliance (GRC) capabilities with Computrace® 5.12, Absolute is positioned as a clear leader in the convergence of endpoint security and management.
Using Absolute technology, customers are able to maintain visibility and control over all of their devices, regardless of platform, form factor and locale, to prove compliance and mitigate risk. Absolute will continue to strengthen its market leadership through innovative product development and, where appropriate, small acquisitions.
Absolute is confident that the Company has built a sales platform that is ready to support and effectively monetize tuck-in acquisitions. Absolute has already demonstrated success in this regard with its Absolute Manage product, growing sales five-fold since acquiring the product line in 2009.
In a recent interview, John Livingston, Chairman and CEO of Absolute Software commented on the Company’s strategy with respect to acquisitions. Absolute has discussed its business strategy, including acquisitions, during prior earnings calls and in the Company’s annual disclosure materials.
“Acquisitions will be an integral part of the growth strategy for Absolute over the course of the next 12-month period,” stated John Livingston. “We are focused on targets valued at USD$25 million and less and will likely finalize a deal at the lower end of the range within the next 90 days.”
For future acquisitions, Absolute will focus on opportunities in the US, as that is where the majority of the Company’s customers are located. The Company targets small acquisitions that will leverage its firmware persistence position and create further competitive advantages, complement Absolute’s many devices, one solution vision, and increase the Company’s total addressable market, in a market ripe for disruption. Absolute plans to finance future acquisitions primarily with the Company’s cash reserve.
Absolute’s management and Board of Directors review opportunities and will execute a transaction only if they believe it is in the best interest of the Company and its shareholders. As such, there is no guarantee that the Company will prove successful in its acquisition strategy. Should Absolute make material progress on its acquisition strategy, the Company will update the market as appropriate.