Cybersecurity player Senetas finishes strong HY2025 after $60m Votiro sale

• Senetas is selling its Votiro platform to US-based Menlo Security in a deal with a base consideration of US$37.5 million (A$60 million), with a mix of cash and equity
• The transaction provides Senetas shareholders with an indirect stake in a high-growth US cybersecurity firm backed by top-tier investors
• Proceeds from the sale are expected to improve Senetas’ balance sheet and enable capital management initiatives.

Special Report: Senetas Corporation Limited has closed a surprising half-year, which saw the company report a consolidated revenue increase of 21.5% to $16.4 million, while profit surged by 31% to $1.9 million for the Senetas business segment.

However, the standout development remains the sale of its Votiro business for US$37.5 million (approximately AUD $60m), which is set to become part of US-based cybersecurity firm Menlo Security Inc.

Per its website: Votiro is a “zero trust content security and data detection and response” platform that tackles the threats of data exposure, malware and privacy risks “whether they’re known or not”.

The Votiro sale, announced last month, is structured as a divestment by Votiro Cybersec Global, with Senetas (ASX:SEN)  holding an ongoing interest of just under 60%. Under the agreement, consideration is split – 40% in cash and 60% in Menlo Security shares.

The base valuation is US$37.5 million, with potential incremental payments subject to certain performance milestones.

Up to US$17.2 million of the consideration will be held back for up to 12 months subject to certain conditions relating to the renewal of key Votiro customer contracts.

Initial proceeds are expected in the June 2025 quarter following standard tax clearance processes in Israel.

A new chapter for Votiro and Senetas

The integration with Menlo Security – a firm backed by heavyweights like Vista Equity Partners, Neuberger Berman, and JPMorgan Chase – positions Votiro for rapid expansion.

With Menlo already surpassing US$100 million in annual recurring revenue and projected to achieve cash flow positivity in 2025, Senetas shareholders are set to gain exposure to a well-capitalised and high-growth US cybersecurity leader.

By receiving Menlo shares as part of the transaction, Senetas investors have a direct stake in the future success of a global cybersecurity player.

Menlo’s established position in secure enterprise browser solutions and its extensive customer base provide a strong foundation for sustained market growth, particularly in the difficult but lucrative North American market, potentially drives further value creation for Senetas shareholders.

Looking ahead

Senetas CEO Andrew Wilson emphasised that the integration of Votiro into Menlo’s operations is more than just a divestment – it is a strategic move designed to unlock long-term value.

Andrew Wilson said, “Menlo and Votiro have worked together closely for some time, and already have a shared vision for the future of cybersecurity.

“The transaction leverages Menlo’s financial strength, operational efficiencies, and extensive customer base, creating synergies that are expected to drive future growth.

“It’s an exciting opportunity, and it’s one that Senetas and our shareholders will still have some stake in via the investment we will hold in Menlo.”

As cash proceeds from the sale are realised, Senetas’ board will evaluate various capital management initiatives, potentially returning further value to shareholders.

The transaction not only eliminates Votiro’s operating losses from Senetas’ books but also positions the company to capitalise on the expansion of an established US cybersecurity leader.

With a strong balance sheet, no debt and a clear path to enhanced profitability, Senetas appears well positioned to deliver on its aim of long-term returns for investors.

This article was developed in collaboration with Senetas, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.