Blue Cube Security has bounced back from aborted merger, CEO says

Gary Haycock-West talks to CRN about the security VAR's growth plans after it failed to cross the line on deal with Epaton and Next Generation Security

Security VAR Blue Cube Security is on course for a "good year" after regrouping from a failed merger attempt with a rival, according to its CEO.

Talking to CRN, Gary Haycock-West said the West Sussex-based outfit has retooled its business in the wake of the aborted union.

Last August, Blue Cube announced its intention to merge with two resellers owned by Jonathan Lassman and Phil Dick in the form of Epaton and Next Generation Security. At the time, Haycock-West described them as "sparring partners".

But the two parties pulled the plug on their union in December, Haycock-West confirmed.

"We were nearly there, but it got to the point where there were some challenges [around the financial elements of the deal] that we couldn't reconcile," he said.

"It was the right thing not to merge, because we couldn't overcome it," Haycock-West added.

Although the collapse of the deal led to disappointment among its staff, the Fortinet partner used the event as an opportunity to reset its business.

"We had to sit back and think about what we wanted to do and how we wanted to do it. It was a little rocky at that time," Haycock-West explained.

"We undertook a process of individually interviewing all the staff confidentially, and asking them where they would take the business and about the challenges they have in their work life. It turned up some interesting elements, because I think we'd all got a bit distracted for that last 12 months because of the merger.

"We've made a few lighter changes within the business. We've empowered some people and we expanded our share option scheme. I'm pleased to report the boat was steadied quickly thereafter."

Blue Cube had a "phenomenal" first quarter, "quiet" second quarter and "good third quarter", Haycock-West said.

"We're looking for a good ramp up for the end of year, so we're looking to put in another good year," he said.

Although the emphasis is on organic growth, Blue Cube is not ruling out a return to the M&A trail, Haycock-West revealed.

"There are some great services and technology out there that's complementary, like we were looking at with Jonathan and Phil, so we're always open minded," he said.