• Senetas sells Votiro Cybersec Global Pty Ltd to Menlo Security Inc. for cash and shares
• Votiro will become part of Menlo's cybersecurity business, accelerating Votiro's growth
• Senetas to retain ongoing exposure to Votiro through its shareholding in Menlo

Senetas Corporation Ltd (ASX: SEN) has announced that the board of its subsidiary Votiro Cybersec Global Pty Ltd has approved the sale of Votiro's operational subsidiaries to Menlo Security Inc., a privately held cybersecurity company based in the United States. The transaction involves the sale of Votiro Cybersec Limited, Votiro's wholly owned Israeli subsidiary, and its subsidiary entities. Senetas currently holds a controlling 55.7% stake in Votiro. The transaction consideration for 100% of Votiro Cybersec Limited includes a base consideration of US$37.5 million (approximately A$60 million), plus potential incremental consideration if certain conditions are met. Approximately 45% of the base consideration is deferred for 12 months, conditional on the renewal of key customer contracts. The transaction proceeds will be received by Votiro in the form of 40% cash and 60% as shares in Menlo. Senetas will retain its shareholding in Votiro, giving it an ongoing exposure to the value of the shares Votiro holds in Menlo. Menlo is a pioneer of secure enterprise browser solutions, trusted by major global businesses and government agencies. The acquisition of Votiro is expected to significantly grow Menlo's market share, and Senetas believes its indirect investment in Menlo will provide substantial upside potential for both Votiro and Senetas shareholders.

Senetas believes the transaction represents a significant opportunity to accelerate the growth of the underlying Votiro business, and that its ongoing exposure to Menlo via the shares Votiro received as consideration has the potential to deliver substantial upside to both Votiro and Senetas shareholders by providing them with exposure to a larger and well-financed US-based security company.