Web-security firm strikes Telstra deal potentially worth 'tens of millions'

Bill Farmer, Mako chief executive. Photo / NZ Herald

New Zealand cyber-security firm Mako Networks says a deal it has struck with Australia's biggest telecommunications provider is potentially worth tens of millions of dollars and will greatly expand its reach across the Tasman.

The Auckland-based company's technology — used by businesses with multiple sites, such as retailers, to provide protection from threats such as credit-card fraud — will be incorporated into a Telstra business broadband package, giving the Aussie telco's customers access to services including secure internet access, payment card industry data, standard compliance and content filtering.

"The deal is particularly significant given that it's quite a broad arrangement with Telstra — not only Telstra in Australia but Telstra global," said Mako chief executive Bill Farmer. "We see this as a major part of our internationalisation and a step in the right direction. It has got some really significant potential for us — in the tens of millions of dollars."

Telstra chief procurement officer Richard Allen said the company was always looking for ways to improve its security capabilities.

"We're pleased to offer Telstra customers this service as part of an expanded broadband offering that will connect and secure their operations," Allen said.

Farmer said he could not disclose Mako's revenue, which reportedly reached $10 million in 2012.

The company announced deals with US wireless communications provider Sprint and payment service developer Aperia Solutions last year.

Farmer said Mako was also rolling out its technology in Chevron petrol stations across North America.

The company had raised $5 million in private investment in the past year, he said, and did not have any immediate plans for a sharemarket listing.

"We just want to remain as we are [privately-owned] as we grow our business," Farmer said. "We're looking at all of the different options ... [a listing] is not something that's going to happen tomorrow."