Inside information: WithSecure sells its Cyber security consulting business

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WithSecure Corporation, Inside information, 23 January 2025 at 9:00 EET

Inside information: WithSecure sells its Cyber security consulting business

WithSecure Corporation has today signed a share purchase agreement, under which its cyber security consulting business will be sold to Neqst.

Neqst is a Swedish investment firm, focusing exclusively on technology and technology-enabled companies.

The transaction is executed by the sale of shares of the parent company of a to-be-established WithSecure cyber security consulting group, to which the consulting business will be transferred prior to the completion of the transaction. As a result of the agreement, total of approximately 250 employees located in Finland, UK, Sweden, Denmark, Singapore, Italy, and US are expected to transfer to the buyer.

"The divestment of consulting business is in line with the WithSecure strategy updates, first announced in October 2023. Cyber security consulting unit provides world-leading offensive security consultancy services. We are very happy to have found a new owner, who will continue to develop the strategic capabilities as part of their core strategy” states Antti Koskela, President and CEO of WithSecure.

"The company is home to an exceptional team of cybersecurity thought leaders, serving some of the world’s largest and most demanding clients. We are delighted to welcome the company to our portfolio of leading IT services firms, where it will serve as a natural and valuable complement. Establishing the company as a standalone entity, supported by our expertise and strategic resources, positions it for an exciting growth journey ahead” states Tobias Edvardsson of Neqst, future chairman of the cyber security consulting business.

The parties have agreed on a total enterprise value of EUR 22.5 million. Of this, 60% becomes payable as fixed cash and debt-free purchase price upon completion of the transaction. The remaining 40% is variable purchase price, based on the performance of the business in 2025 and 2026, and it becomes payable in two installments in the beginning of 2026 and 2027.

WithSecure will classify the cyber security consulting business as assets held for sale until the closing of the agreement and measure the net assets at fair value. The results of the business to be divested will be included in the discontinued operations. While the financial impacts of the transaction are still under analysis, and pending a financial audit, WithSecure expects to record an impairment cost of approximately EUR 13 million in the fourth quarter of 2024. The impairment will be recognized as part of the discontinued operations result.

The transaction is expected to be completed during the second quarter of 2025.  The completion of the transaction is subject to customary closing conditions and regulatory approvals.

WithSecure will publish its Financial statement release of fourth quarter of 2024 on 12 February 2025.

Contact information:

Laura Viita
VP, Controlling, investor relations and sustainability
WithSecure Corporation
+358 50 487 1044
investor-relations@withsecure.com