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archTIS Closes Merger with Nucleus Cyber to Accelerate Growth in 2021

by | Jan 3, 2021

Happy New Year and welcome to 2021. It was a busy holiday week filled with 2020 reflection, strategic 2021 planning and most importantly enjoying time with the family.
I am pleased to share that the acquisition of Nucleus Cyber by archTIS (ASX:AR9), an Australian security company that provides a multi-level security platform for collaboration of highly classified content, was completed on December 23, 2020. Nucleus Cyber will initially operate as a wholly owned subsidiary of archTIS. This is an exciting time as we accelerate our growth strategies and plans for calendar year 2021.

Established in 2006, archTIS has over 14 years’ experience delivering secure information and identity management services and solutions within the highest security levels of the Australian Government. Founded in late 2018, Nucleus Cyber’s advanced information protection solutions for Microsoft and Nutanix are used by marquee customers in government, manufacturing, healthcare, pharmaceuticals and legal.  The combined offerings across an attribute-based access controls methodology (ABAC) will provide to the market a highly complementary set of solutions that will enhance robust capabilities for the secure sharing and collaboration of information while driving global expansion.

To aid in the immediate growth and expansion of the company, archTIS secured a successful capital raise of A$8.4m in November. We have already started and will continue to make substantial investments in the new calendar year to fuel strategic growth including new sales dedicated headcount and increased marketing activities.  Even prior to the closing of the merger, the two teams have been working together on integration planning. We have created several new and substantial cross-sell pipeline opportunities in key government defense agencies, global defense supply chain contractors and expansion of our partner network.

The merger allows Nucleus Cyber and archTIS to deliver a global sales and go to market strategy that relies on a multi-tiered distribution through key regional direct sales hubs, an established and growing reseller channel and key alliance partners including Microsoft, Nutanix, LiveTiles (ASX:LVT) and Tesserent (ASX:TNT).  The company will also expand a go to market and awareness strategy while delivering new products that push forward technology innovation. For our valued investors, the joint product strategy offering creates increased revenue diversity across established and proven vertical industries, faster sales cycles and more predictable and value-driven recurring revenues that leverage the existing technology platforms.

In addition to combining our technologies, the Nucleus Cyber team will be joining archTIS as well.  I am also pleased to share that I will be able to leverage my 25+ years in the public and private technology sector as the new Global Chief Operating Officer (COO) of archTIS to oversee the merger and accelerated growth. In today’s challenging cyber environment, I Iook forward to combining these two fast-paced companies and talented teams to create an unrivalled product offering that dynamically secures all your collaboration and ensures compliance so our customers can focus on getting business done – securely.

I’d like to personally thank Daniel Lai CEO as well as the Board of Directors of archTIS for their consideration, time, and guidance through the merger process.

This is an exciting time for archTIS and Nucleus Cyber. We thank our customers, partners, investors and most importantly, employees for your support. We look forward to continuing to build our relationship with you in 2021.

Please feel free to reach out to me with any thoughts or questions as we go forward on this exciting journey.

Best regards,
Kurt Mueffelmann
Global COO, archTIS and Nucleus Cyber

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