Australian firms CSO Group & xAmplify to merge in 2024

Australian cyber security business CSO Group and automation systems integrator xAmplify have announced plans to merge, creating the largest Australian-owned integrator of AI, cyber security, technology, and business automation services. The new entity, which will be headquartered in Sydney, aims to bring digitally advanced solutions to over 110 enterprise and government organisations across various sectors.

Michael Simkovic, CEO and Founder of CSO Group, stated, "The merger of CSO Group and xAmplify will create Australia’s largest home-grown cyber security, AI and automation consulting business, with a gross turnover exceeding AUD $100 million annually. We see an enormous market and growth opportunity to disrupt and challenge the traditional large global service provider models."

The merged organisation will deliver advanced AI, automation, and cyber solutions to a diverse array of industries including defence, federal and state government, energy, financial services, health, logistics, retail, construction, and mining. The combined workforce will exceed 160 staff members and extend its operations across every Australian state and territory.

"This is a true merger of equals," remarked Simkovic. "The integration of the two businesses will create an amplifier effect, enabling us to deliver a new generation of innovative and integrated business solutions with the convergence of cyber security, automation, and AI technologies. Ultimately, this will bring more intelligence, optimisation, and value to our clients, while also building greater Australian sovereign capability and expertise."

Government and corporate clients will gain access to a broad spectrum of services from both companies, spanning strategy, governance, risk and compliance, managed security, AI, and technology and business automation services. The merger will also adopt a renewed emphasis on secure AI technologies to provide high-performance IT services.

Wayne Gowland, CEO and Co-founder of xAmplify, expressed his optimism about the merger, saying, "This merger will create a fully integrated national business that will work across every state and territory, enabling clients to leverage AI, automation and cyber security to deliver greater innovation, efficiency, assurance, and business value." Gowland highlighted the rapid changes in the business and technology sectors and the growing need for safe and secure adoption of next-generation technologies. "Together, we aspire to create a digitally advanced and protected Australia by helping clients to identify, solve and manage their real-world problems of today, while safeguarding them for tomorrow," he added.

Industry forecasts underscore the relevance and timing of the merger. Analyst group Gartner predicts that Australian organisations will spend more than AUD $7.3 billion on information security and risk management products and services in 2024, marking an 11.5% increase from the previous year. Furthermore, national spending on AI systems is projected to grow to over AUD $3.6 billion by 2025, according to the Commonwealth Scientific and Industrial Research Organisation.

The merger is anticipated to be finalised in the latter half of 2024.