Ekinops Acquires Olfeo: A Cybersecurity-Driven Play for Telecom Dominance in the $9B SASE Market

The telecom infrastructure sector is undergoing a seismic shift as cybersecurity becomes a non-negotiable component of modern networking. Ekinops’ acquisition of Olfeo—a French leader in Security Service Edge (SSE) software—positions the company to capitalize on this trend, merging its optical and access networking expertise with Olfeo’s SASE solutions. This deal isn’t just a tuck-in; it’s a bold move to dominate the €600M+ Unified SASE segment, growing at a 27% CAGR, and accelerate Ekinops’ transition to a high-margin software-and-services powerhouse.
Synergies: Building a European SASE Champion
Ekinops has long been a niche player in telecom infrastructure, but Olfeo’s acquisition transforms it into a full-stack networking and cybersecurity provider. The combined entity will offer:
- Unified SASE Solutions: Combining Ekinops’ SD-WAN and optical transport hardware with Olfeo’s SSE software, creating a single platform for enterprises to manage secure, high-performance networks.
- 500+ Enterprise Customers: Olfeo’s existing customer base—spanning healthcare, finance, and government—provides immediate scale and recurring revenue.
- R&D Powerhouse: Olfeo’s 60-person team (half in R&D) will drive innovation in compliance-driven markets like the EU, where GDPR and data sovereignty rules are non-negotiable.
The strategic alignment is clear: Ekinops’ Software & Services revenue (now 18% of total) jumps to 22% post-deal, putting it on track to hit its 30% target by 2028. With Olfeo’s €6.3M ARR and 20%+ EBITDA margins, this is a cash-accretive move that strengthens Ekinops’ balance sheet.

Market Leadership: The $9B SASE Opportunity
The Secure Access Service Edge (SASE) market is booming, driven by remote work, cloud adoption, and regulatory compliance. By 2025, the global SASE market will hit $9 billion, with the Unified SASE segment (single-vendor solutions) commanding 90% of the market by 2029, according to Dell’Oro Group.
Ekinops’ play here is laser-focused:
- Targeting Mid-Market Enterprises: Olfeo’s SSE software already serves 500+ customers, many of whom need turnkey solutions to avoid vendor fragmentation.
- EU Regulatory Alignment: With all manufacturing in Europe and Olfeo’s GDPR-compliant software, the duo can dominate public sector contracts in France, Germany, and beyond.
- Scalability: Olfeo’s recurring revenue model (ARR) aligns perfectly with Ekinops’ goal to generate 50% of software revenue as recurring streams by 2028.
Financial Forte: Strong Balance Sheet, 20%+ EBITDA Margins
This acquisition is underpinned by financial discipline:
- Cash-Only Deal: Financed via Ekinops’ €29.5M net cash position (as of 2024) and existing credit lines, with no debt issuance or earn-outs.
- Margin Expansion: Ekinops’ 2024 EBITDA margin was 15.3%—the Bridge strategic plan targets 20%+ margins by 2025, achievable through Olfeo’s high-margin software and cost synergies.
- De-Risked Execution: Olfeo’s management stays on board, ensuring seamless integration.
Critically, the deal doesn’t dilute shareholders and leverages Ekinops’ improved free cash flow (€10.9M in 2024), which has doubled since 2023. With €16.9M in financial borrowings, the company remains agile for future acquisitions or product launches.
Why This Deal Matters for Investors
The telecom sector is stuck in a low-growth rut, but Ekinops is repositioning itself as a cybersecurity-infrastructure hybrid—a space where software margins and recurring revenue dominate. The Olfeo deal isn’t just about market share; it’s about future-proofing Ekinops’ revenue streams in an era where:
- Telecom Operators Are Shifting: From CAPEX-heavy hardware to OPEX-driven software-as-a-service (SaaS).
- Regulatory Tailwinds: EU’s data localization laws favor European SASE providers over U.S. giants like Cisco or Palo Alto.
- Enterprise Demand: 83% of businesses now prioritize SASE for hybrid work and cloud migration, per Gartner.
Final Verdict: Buy the Play on SASE Dominance
Ekinops’ acquisition of Olfeo is a textbook value-creation move: it accelerates software revenue, captures high-margin SASE growth, and leverages a fortress balance sheet. With a target EBITDA margin of 20%+, a 27% CAGR tailwind, and minimal execution risk, this is a rare telecom stock with a clear path to double-digit growth.
Investors should act now: the deal’s regulatory hurdles are minimal, and Ekinops’ stock trades at a 2025 EV/EBITDA of 8x—a discount to peers in the cybersecurity-infrastructure space. The combination of strategic clarity, financial strength, and market tailwinds makes this a buy on any dip.

Action Item: Add Ekinops (KOP) to your watchlist. This is a 2025 winner in the cybersecurity-infrastructure convergence play.
This article is for informational purposes only and not financial advice. Always conduct your own research before making investment decisions.
Comments
No comments yet