EQS-News: cyan AG sells BSS/OSS segment and focuses on high-growth business with intelligent cybersecurity solutions

cyan AG sells BSS/OSS segment and focuses on high-growth business with intelligent cybersecurity solutions

• Sale of the BSS/OSS segment to telecommunications specialist Compax
• Focus on the high-growth core business in the cybersecurity market
• Use of sales proceeds to strengthen liquid funds and product development
• Strategic focus increases predictability and strengthens independence 
• High proportion of recurring revenues paves the way for profitable growth in the medium term 
• Strategic partnership with Compax for technology and sales

Munich, December 19, 2023 – cyan AG, a European provider of IT security solutions, is selling its BSS/OSS segment for MVNO software. The buyer is Compax Group, with which a strategic partnership for technology and sales activities was concluded in the course of the transaction. The sale will provide cyan with funds in the mid-single-digit million range, which an additional upside over the next four years by means of an earn-out. The proceeds will be invested primarily in product development. With this step, cyan is focusing on its core strength with over 16 years of experience, the development of intelligent cybersecurity solutions for end customers of mobile and fixed network providers - a dynamically growing future market. The focus on the core business will also significantly improve profitability. The closing of the transaction is planned for December 31, 2023 and is expected to become effective on January 1, 2024.

Markus Cserna, Interim-CEO und CTO of cyan AG: "With the sale of our BSS/OSS segment, we are focusing on our core business. Under the 'cyan digital security' brand, we offer customers innovative technology solutions that enable people to securely utilize the opportunities of the digital world. Our partnerships with market-leading telecommunications providers such as Orange, Magenta, Claro and dtac show that our solutions are in demand worldwide. Building on over 75% growth in subscribers in 2023 so far, we will continue to systematically tap the opportunities in this exciting future market and drive forward the positive development of the 'Cybersecurity' division.”

Strategic focus on the growth segment "Cybersecurity"

The "Cybersecurity" segment is developing very promisingly. In the first half of 2023, revenue increased by around 40 percent. Since 2021, cyan has expanded its customer base to more than one million end users. This development is to be continued with the new growth strategy. Markus Cserna, interim CEO and CTO, will lead its implementation together with the new CEO Thomas Kicker from the beginning of 2024. Mr. Kicker has been closely involved in strategy development and the sales process. He has many years of experience in the telecommunications industry. As Managing Director of T-Mobile Austria, he concluded cyan's first major contract on the customer side. In his last two professional positions as Commercial Lead at Palantir in Europe and as COO at blackshark.ai, he was in charge of developing the market and product strategy, and thus made a significant contribution to sustainable growth. The Management Board will report on the next strategic steps in the first quarter of 2024.

Increased investment in product development

The free cash from the sale will be invested in product development  - especially in the areas of machine learning, threat intelligence and content classification. Existing technology and security solutions will be enhanced in order to offer customers even better digital protection. Investments are also planned in risk analysis for business customers and in reporting capabilies to customers.

cyan is thus strengthening the development of first-class security solutions that effectively address the increasing challenges of the digital world. Driven by the dynamic development of big data, cloud computing and remote work, the cyber security sector continues to gain in importance. The market for mobile application-based cybersecurity solutions in particular is expected to grow significantly.

Efficient organizational structure with a significantly lower cost base

By concentrating on its core business, cyan is streamlining its organization, becoming more agile and optimizing its cost structure. The number of employees will decrease  from approx. 130 to around 50. The employees will transition to the buyer as part of the transaction. The leaner organizational structure will enable cyan to grow under its own steam. The new model also strengthens recurring revenues. This increases predictability and paves the way for cash flow-positive and profitable growth in the medium term.

Strategic partnership with Compax Group

The sale of the segment to telecommunications specialist Compax also marks the start of a close strategic partnership between the two companies. This partnership will focus on joint technology and marketing activities.

Leopold Kojeder, CEO and Owner of Compax Group: "I am delighted that we are strengthening our core business with the acquisition of the BSS/OSS division. We will also work closely with cyan in the areas of technology and sales in order to exploit synergies. We have various strengths that we can use to further develop our respective business areas and will benefit from each other's expertise."

About Compax:

CompaxDigital recognizes the market's need to rapidly transform its customer and revenue management. Its cloud-native digital BSS platform is a game-changer for customers who need to support multiple business units (B2C, B2B, B2B2X). CompaxDigital is known for its hands-on engineering and fast, agile BSS deployment. 70-80% of CompaxDigital's customer base comes from the telecommunications industry as well as the digital media, public administration, insurance and transportation sectors. CompaxDigital was founded in 1994 and operates globally with over 500 employees in Europe, Taiwan, South Korea, Singapore and the United States of America.

About cyan

cyan AG (XETR: CYR) is a provider of intelligent cybersecurity solutions for telecommunications companies with more than 15 years of experience in the IT industry. The company offers IT security solutions for end customers of mobile and fixed network internet providers, internet service providers, virtual mobile network providers and financial service providers. cyan's solutions are integrated as white label products into the infrastructure of business partners, who then offer them to their end customers in a B2B2C model under their own brand.

Today, the group of companies has numerous international customers through which cyan products are sold to end customers. In doing so, cyan can offer a comprehensive range of cybersecurity solutions. In addition, cyan operates its own research and development center with the aim of identifying trends in the industry at an early stage and developing optimal product solutions. In addition to Orange, cyan's customers include Claro Chile (América Móvil Group), dtac (Telenor Group) and the telecommunications group Magenta (Deutsche Telekom / T-Mobile). More information at: www.cyansecurity.com.

cyan AG Investor Relations:
cyan AG
Tel. +49 89 71042 2073
E-Mail: ir@cyansecurity.com 

cyan AG Press Contact:
Better Orange IR & HV AG
Tel. +49 89 88 96 906 17
E-Mail: frank.ostermair@better-orange.de