Ekinops Expands Its Cybersecurity Portfolio with Olfeo Acquisition

Ekinops, a prominent telecommunications solutions provider listed on Euronext Paris, has officially announced the acquisition of Olfeo, a French cybersecurity software firm. This strategic move aims to bolster Ekinops' position in the growing fields of Security Service Edge (SSE) and Secure Access Service Edge (SASE) solutions, which play a vital role in network cybersecurity.

Founded in 2003 and headquartered in Paris, Olfeo specializes in cybersecurity solutions that safeguard enterprise information systems from various online threats, including malware and data breaches. Over the years, Olfeo has established itself as a key player in the European market, offering a robust web security gateway through either a subscription-based model or on-premises solutions. With a dedicated team of 60 professionals, half of whom are focused on research and development, Olfeo has secured over 500 clients ranging from businesses and local authorities to healthcare institutions and government services. This client base has generated an impressive annual recurring revenue (ARR) of €6.3 million in 2024, achieving an EBITDA margin exceeding 20%.

Ekinops' acquisition of Olfeo is particularly meaningful as the two companies have previously collaborated on Ekinops' SD-WAN solutions, underscoring a well-established partnership that positions them for future growth. This acquisition is fully financed in cash using Ekinops' internal funds alongside a syndicated credit line geared towards external expansion, thereby solidifying a strong financial footing for the merged entity.

A Transformative Step in Ekinops' Strategic Plan

This merger aligns seamlessly with Ekinops' Bridge strategic plan, which seeks to accelerate the company's leadership in high-growth markets. Ekinops envisions returning to double-digit growth rates and aims for over 30% of its annual revenue to come from Software Services by 2028. With the integration of Olfeo, pro forma estimates suggest that around 22% of Ekinops' sales could stem from Software Services.

The SASE market, projected to surpass $9 billion by 2025 with a compound annual growth rate of over 13%, is increasingly critical as businesses navigate the complexities of digital transformation. Combining Ekinops' expertise in managing critical networks with Olfeo's innovative cybersecurity solutions presents a formidable opportunity to capture a significant share of this market. As digital infrastructures evolve, the demand for integrated cybersecurity solutions that encompass both connectivity and security is soaring.