Sysnet raises $65m in debt funding and clinches another acquisition

6 Jan 2021

Image: © andranik123/Stock.adobe.com

The Irish business has acquired its third company in the last month and raised further funding from backers.

Sysnet, a Dublin-based payments security company, has raised $65m in debt funding as it rolls on with its latest acquisition.

The company has acquired NuArx, a US-based firm providing security solutions for payments technology. It marks the Irish company’s third acquisition in recent weeks, after it scooped up Viking Cloud and the managed compliance solutions division of ControlScan in December – all businesses in the cybersecurity and compliance space.

Sysnet chief executive Gabe Moynagh said the deals are part of the company’s growth strategy as it expands further in the US and Europe.

“As organisations continue to strain under the ever-increasing onslaught of cyberattacks, scalable cybersecurity platforms are needed so merchants of all sizes and locations can address emerging threats, while also achieving and meeting critical compliance mandates,” Moynagh said.

“NuArx bolsters Sysnet’s cybersecurity and compliance solutions and plays a critical role in helping our customers meet ever-increasing threats.”

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According to Sysnet, it now has more than 4m merchants and payment processors using its tech for cybersecurity and payments compliance globally.

SMEs have been a key focus for the company. It said that the pandemic has posed challenges for SMEs as they have become more reliant on online channels during Covid-19 restrictions, placing increased focus on security.

While no financial terms for the deals have been disclosed, Sysnet has been raising more money from investors to finance this growth.

The latest funding comes in the form of $65m in debt financing from US investment firm Keybanc Capital Markets, the Irish Times reports. This follows a €150 million investment last year from FTV Capital and True Wind Capital.

Sysnet was founded in 1989 by Moynagh’s father Tom Moynagh and now employs more than 600 people.

According to the company’s latest accounts, it booked turnover of €26.7m in 2019 with a pre-tax profit just under €370,000.

Jonathan Keane is a freelance business and technology journalist based in Dublin

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