Excite looks to acquire CBIT Digital Forensics Group

Excite Technology Services has made an offer to acquire CBIT Digital Forensic Services, a local provider of digital forensic tools (CDFS) and industry-embedded training and certification to law enforcement, government, and corporate enterprises. 

Including CDFS in the Excite Group will immediately expand capabilities and market presence in the managed cyber security, deep digital forensics, accredited training and IT services sectors.

According to Excite’s statement to the ASX, CDFS had unaudited revenues of $14 million for the year to 30 June 2024, with normalised earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $954,000 after adjusting for related party expenses and one-off payments.

Excite will pay CDFS $750,000 cash and issue 100 million fully paid ordinary shares in the capital of the company. Performance consideration, up to a further $2.4 million, is payable based on the audited EBITDA of CDFS, achieving $1.8 million for the 12 months ending 30 June 2025.

By the first day of July 2025, Excite will pay a further $750,000 in cash, provided it has kept its position.

For example, if the CDFS business’s EBITDA for the relevant period is $1.2 million (66 per cent of the $1.8 million target), the vendors would receive 66 per cent of the performance consideration. 

The service provider has been busy in the first six months of 2024. In March, it signed a deal with Belgravia Group to provide an option of up to $2 million to strengthen its sales and artificial intelligence (AI) capabilities.

Excite also extended an existing Red Hat Linux support agreement with the Tasmanian government for another three years.