Regenersis is aiming to steal a march on its competitors with the addition of Blancco’s data erasure service in light of the EU’s data protection legislation.
The mobile and consumer electronics repair company acquired the Finnish firm late last month for EUR60m (£50m) in an attempt to grow its base as organisations across the continent tighten up their data operations.
Regenersis CFO Jog Dhody (pictured) told Mobile: ‘With this acquisition we become a one-stop shop. It’s not the final piece of the puzzle, but it’s a significant piece.
‘Blancco is the market leading software provider in the field of data erasure and legislation made by the European Parliament ups the ante in terms of companies managing data. Companies have to prove that they are being responsible with data, and if they’re not compliant by April 2015 they may be fined 5% of their revenue. That creates a big opportunity for Blancco and Regenersis.’
Dhody added that Blancco had been growing at 25% every year for the last 5 years as total sales hit EUR15m (£12.4m) in 2013.
The move is yet another indication of the UK-based company ramping up its operations. In February Regenersis inked deals with Nokia, Telefónica and Samsung, in addition to agreements with HTC and LG. Those contracts are worth £40m per year to the repair specialists, and Dhody believes its newest purchase will offer even more value to existing clients.
He said: ‘Regenersis feels very strongly that if we pitch it right we will get traction. We already have a top class reputation for our repair service, and with Blancco’s data erasure we can offer our clients more than our competitors.
‘We raised £100m on the stock market and spent half buying Blancco. We paid a 14 times multiple on profit, but we believe we have got a good deal. We could have paid twice as much and it still would have been a good deal.’