High Wire Networks Sells Legacy Staffing Subsidiary in $11.5 Million Transaction, Turns Focus on Faster-Growing Managed Cybersecurity and Tech Enablement Business
High Wire Networks, a global leader in managed cybersecurity, announced the strategic sale of its staffing business for $11.5 million. This divestiture will eliminate $3.9 million in annual debt payments and reduce fully diluted common shares by 16%. The company projects revenue growth in 2023 of $43 million to $47 million, a 59% to 74% increase from the previous year. Over half of its revenue in 2022 was recurring, and with a historical high in contracted deployments and a strong sales pipeline, High Wire aims to focus on its higher-margin cybersecurity business.
- Eliminates $3.9 million annual debt, providing substantial capital to support growth.
- Reduces fully diluted common shares by 16%, potentially increasing shareholder value.
- Projected revenue growth from continuing operations of $43 million - $47 million in 2023, a 59% - 74% increase.
- More than half of 2022 revenue was recurring, indicating stability and strong future growth potential.
- None.
Multiple benefits of the divestiture include:
- Eliminates debt payments of
$3.9 million on an annualized basis. - Reduces fully diluted common shares by
16% . - Enables greater focus on faster-growing, higher-margin managed cybersecurity and technology enablement business with backlog and sales pipeline at record levels.
- Puts company on track for revenue from continuing operations of
$43 million -$47 million in 2023, representing growth of59% -74% and driving positive operating income, cash flow and adjusted EBITDA.
BATAVIA, Ill., March 08, 2023 (GLOBE NEWSWIRE) -- High Wire Networks, Inc. (OTCQB: HWNI), a leading global provider of managed cybersecurity and technology enablement services, has sold its legacy staffing business in a
The transaction also eliminates approximately
The transaction also reduces High Wire’s fully diluted common shares by more than
“While our staffing subsidiary had been growing steadily, this was a strategic sale at a significant multiple to our original acquisition price in 2021,” stated company CEO Mark Porter. “Moreover, its divestiture allows us to focus our attention and financial resources on our core cybersecurity and technology enablement business. These areas have been generating our strongest growth and providing the most attractive market opportunities with our unique channel partner program.”
The company’s continuing operations comprised of cybersecurity and technology enablement services generated on a pro forma basis an estimated
More than half of High Wire’s revenue in 2022 was recurring based on long-term contracts, and the company expects this to continue to expand in 2023 with the anticipated growth of its managed service offerings.
“Our growth outlook for 2023 is supported by both the many benefits of this divestiture and our backlog of contracted deployments currently remaining at a historical high,” noted company COO, Stephen LaMarche. “Our sales pipeline is also the strongest it has ever been in terms of both the number and size of prospective deals, particularly for managed security. Our recurring revenue from our managed cybersecurity offering, Overwatch by High Wire Networks™, has also grown by more than
In addition to driving higher quality revenue streams and profitability, the sale of the staffing business is part of a larger initiative by the company over the last several months to strengthen its capitalization and organizational structure, eliminate high interest debt, secure more favorable financing, and prepare for an uplisting to a major U.S. stock exchange.
The company’s growth in managed services has been driven by a growing number of channel partners who have expanded their managed cybersecurity service offerings using High Wire’s Overwatch cybersecurity solution. In partnership with High Wire, they can provide their business customers award-winning 24/7 managed security protection with best-in-breed threat prevention, detection and response that is enhanced by the company’s proprietary Overwatch Security Orchestration Automation and Response™ (SOAR™) technology.
Membership of the company’s channel partner program now totals more than 600 worldwide, including industry leading organizations that cater to the Fortune 500. It is comprised of leading MSPs, IT firms, Telcos, hardware and software manufacturers, global system integrators, value added resellers and distributors, and strategic consulting firms. These partners have turned to High Wire to better address their customers’ growing demand for more scalable, manageable, and effective IT and cybersecurity solutions.
Through these channel partners, High Wire’s highly flexible and adaptable managed services have earned the trust of tens of thousands of SMBs and enterprise end-customers worldwide, including hundreds of the Fortune 500, many of the Fortune 50, and multiple top federal government agencies.
High Wire’s technology enablement offering, comprised of professional and managed IT services, addresses a global IT service market that is expected to grow at a
For additional details about the sale of the staffing business, see High Wire Networks’ Form 8-K filed with the U.S. Securities and Exchange Commission at www.sec.gov. The filing is also available from the Investors section at highwirenetworks.com.
To learn more about High Wire and its award-winning managed cybersecurity and IT enablement services, visit HighWireNetworks.com or view the company’s free video series on YouTube.
About High Wire Networks
High Wire Networks, Inc. (OTCWB: HWNI) is a fast-growing, award-winning global provider of managed cybersecurity and IT enablement services. Through more than 600 channel partners, it delivers trusted managed services for nearly 1,000 managed security customers and tens of thousands of technology customers. Its end-customers include hundreds of Fortune 500 companies and the nation’s largest government agencies.
The company’s Overwatch by High Wire Networks™ platform offers a range of subscription services for threat prevention, detection and response to meet the security and compliance requirements of organizations large and small. The company’s IT enablement services provide the foundation for growing its higher-margin Overwatch business.
High Wire has 350 employees worldwide and seven U.S. offices, including a U.S. based 24/7 Network Operations Center and Security Operations Center in Chicago, with additional regional offices in Toronto, Puerto Rico and UK.
High Wire was recently ranked by Frost & Sullivan as a Top 12 Managed Security Service Provider in the Americas. It was also recently named to CRN’s MSP 500 and Elite 150 lists of the nation’s top IT managed service providers.
Learn more at HighWireNetworks.com. Follow the company on Twitter, view its extensive video series on YouTube or connect on LinkedIn.
Forward-Looking Statements
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