Clearswift puts acquisitions on the agenda

Brit security vendor says new investor Lyceum will use it as a vehicle for growth

Web and email security vendor Clearswift is gearing up for potential acquisitions after bagging investment from Lyceum Capital.

Lyceum has seized a majority stake in Clearswift for an estimated £25m to £30m, replacing a trio of backers the vendor admits lacked the appetite to invest in the next stage of its growth.

Miles Rippon, vice president of worldwide channels at Clearswift, said the investment could see it mimic fellow private equity-backed Brit security vendor Sophos by going on an acquisition roll.

"Lyceum has not bought us to maintain the status quo, but as a vehicle for growth," he said.

"In the mid-to-long term, I am fairly certain we will see [some acquisitions] as we need to expand our portfolio with complementary products that we and our partners can take to the install base."

Clearswift generates about 30 to 35 per cent of its £20m annual sales from the UK and has prioritised the US for growth.

"It is tough for a UK vendor to crack the US," Rippon said. "We would like more growth there but ultimately this will have to come through us becoming more niche in certain verticals and new products to give us a differentiator."

Clearswift has made two big changes to its channel model this year, cutting out distribution in April and outsourcing its inside sales team to partners from September.

"The only concern we had around moving to a single-tier model was our ability to ensure cash collection remained as good as it was," Rippon said. "We have had no issues at all."

He stressed the Lyceum takeover would have no impact on its channel strategy.