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Purple Cloud was founded 15 years ago and has grown from a start-up security company to a small, but well-respected competitor in the rapidly growing security sector. The founder, A. Nathan Tecnoti, is a visionary leader who forecasted the need to develop robust software products that protected both individuals and companies. As the Internet grew, so did Tecnoti’s business. He could innovate rapidly, but Tecnoti could not keep up with the ever-changing technologies and was often out-maneuvered by larger companies who had larger and more proficient technical staffs and marketing budgets. Tecnoti began seeking a way to accelerate product development so that he could increase market share and take advantage of new market opportunities. It is for this reason that Tecnoti developed an acquisition strategy to rapidly acquire companies that offered promising security technologies.

Invoking that strategy, Tecnoti recently acquired ABCTech from its founders, Thunder Thompson (CEO) and Chris Christianson (COO). Video press coverage of this event can be viewed at https://lc.gcumedia.com/mgt805/business-acquisition-press-release-video/v1.1/. ABCTech was created in Thompson’s garage while he continued to work for a large computer programming organization. Although their specialty is application design, they understand the importance of safe data. As cybercrimes increased over the past few years, Thompson and Christianson came up with an idea that would change data and personal security. With just a few dollars in their pockets raised from family and friend investments as well as using the maximum amount available on some credit cards, the duo set out to build the necessary architecture that would provide them the opportunity to become the next technology magnates. As they got closer to an end-product, they started marketing their product and were surprised how sales were growing each month as they headed for a quarter million dollars in revenue their first year. Being programmers by day and new entrepreneurs by night, Thompson and Christianson quickly learned there was much they did not know about business. So when the opportunity was presented, they readily accepted the offer to be acquired by Purple Cloud.

The ABCTech product acquired by Purple Cloud is completely different than any other software security application offered in the market. The product offers an elegant solution that is implemented with a single update to the user's computer operating system thereby bypassing the need to distribute daily updates to address new security threats. The simplicity of the solution circumvents both the necessity to acquire capital to build or acquire extensive infrastructure and the requisite addition of high-priced support staff. If implemented rapidly and with precision, Purple Cloud has the opportunity via this acquisition to catapult itself to become a dominant market leader with unprecedented revenue growth and dramatic profits. However, for this plan to succeed, Tecnoti needs to carefully integrate ABCTech’s executives and support staff. If they do not assimilate into Purple Cloud and help implement the technology, the investment and market leadership opportunity will be lost.