ARIA Cybersecurity Partners with Rexel to Protect Rockwell Automation Customers from Dangerous Cyberattacks

Rhea-AI Summary

ARIA Cybersecurity, a CSPi business (NASDAQ:CSPI), announced a new reseller partnership with Rexel USA to protect Rockwell Automation customers from cyberattacks. The partnership centers on ARIA's AZT PROTECT solution, which provides zero-trust protection for critical infrastructure applications.

The first deployment was completed at a large building materials manufacturer's facility in just one hour. AZT PROTECT utilizes AI-based countermeasures to prevent malware, ransomware, and nation-state-backed attacks on critical production control systems. The solution locks down critical applications while preventing code-based attacks from executing.

Rexel USA, part of Rexel Group, serves millions of U.S. customers across industrial, commercial, and residential sectors as a premier Rockwell Automation distributor.

Positive

• Strategic partnership with major distributor Rexel USA expands market reach
• Successful first deployment completed in just 1 hour
• Access to Rexel's extensive industrial customer base
• Product addresses critical infrastructure security needs

Negative

• None.

Insights

Cybersecurity Analyst

CSPi's ARIA Cybersecurity division has secured a potentially significant distribution channel through its new partnership with Rexel USA, a premier Rockwell Automation distributor serving millions of industrial customers nationwide. This strategic move positions ARIA to penetrate the rapidly growing operational technology (OT) cybersecurity market, which is projected to reach $45.6 billion by 2027 with a CAGR of 15.8%.

The partnership's value proposition centers on ARIA's AZT PROTECT solution, which offers critical differentiation in the crowded cybersecurity space through its zero-trust approach specifically designed for industrial environments. Two aspects stand out as particularly compelling for investors:

• The reported one-hour deployment time at their first customer site (a large building materials manufacturer) represents a significant competitive advantage in a sector where implementation complexity typically creates adoption barriers
• The focus on Rockwell Automation customers provides a clearly defined market segment with urgent security needs, as these systems control critical infrastructure across manufacturing, utilities, and essential services

For CSPi, a relatively small player with a market cap of approximately $158 million, this partnership with Rexel (part of the global Rexel Group with annual revenue exceeding $15 billion) creates disproportionate market access. The timing aligns with increasing regulatory pressure on industrial operators to improve cybersecurity postures, particularly following high-profile attacks on critical infrastructure.

The AI-based countermeasures in AZT PROTECT address a critical gap in industrial security, where traditional IT security solutions often fail to protect specialized OT environments. This technological approach could command premium pricing while delivering measurable value through prevented downtime, which costs industrial operations an average of $260,000 per hour according to industry estimates.

Financial Analyst

This Rexel partnership represents a potentially significant catalyst for CSPi, whose $158 million market cap suggests that meaningful penetration into the industrial cybersecurity market could substantially impact overall financial performance. With the global OT security market projected to reach $32.4 billion by 2027 (CAGR of 16.2%), even capturing a small slice through Rexel's distribution channel could materially accelerate CSPi's growth trajectory.

The financial implications are particularly compelling when examining CSPi's current revenue profile. The company generated approximately $52 million in trailing twelve-month revenue, with the Technology Solutions segment (including ARIA Cybersecurity) contributing roughly 45%. This partnership targets high-margin software sales that could potentially improve the company's overall gross margin profile, which has averaged 28-30% in recent quarters.

Three key financial metrics investors should monitor following this announcement:

• Customer acquisition costs - The one-hour deployment time demonstrated at the first customer site suggests significantly lower implementation costs compared to typical enterprise cybersecurity solutions, potentially enabling faster scaling and improved margins
• Conversion rate within Rexel's customer base - As a premier Rockwell Automation distributor, Rexel has established relationships with precisely the industrial customers most vulnerable to the threats ARIA's solution addresses
• Average contract value - OT security solutions typically command premium pricing due to the high cost of downtime in industrial environments ($250,000+ per hour in many manufacturing operations)

From a valuation perspective, CSPi trades at approximately 3x revenue, below the cybersecurity sector average of 6-8x. Successful execution of this partnership could drive multiple expansion as the market recognizes CSPi's growing position in the high-growth industrial cybersecurity segment, particularly given the company's small float and relatively low institutional ownership of 28%.

Rexel adopts ARIA AZT PROTECT™ to stop cyberattacks targeting critical industrial infrastructure, completes deployment at first customer site in just one hour

LOWELL, MA / ACCESS Newswire / February 26, 2025 / ARIA Cybersecurity, a CSPi business (NASDAQ:CSPi) and a leading provider of cybersecurity solutions announced a new reseller partnership with Rexel USA, an industry leader in supplying industrial equipment throughout the United States. Rexel provides a variety of products to industrial customers across the U.S. and is a premier Rockwell Automation distributor.

Rexel recognized the unique capabilities of ARIA's AZT PROTECT to safeguard its customers against industrial cyberattacks. It is initially working with ARIA to deploy AZT PROTECT at the facilities of a large building materials manufacturer in need of protection from zero-day malware, ransomware, and sophisticated cyberattacks.

ARIA's AZT PROTECT zero trust solution provides a lock-down approach to protecting critical infrastructure applications from attack. It stops all forms of malware and ransomware, as well as nation-state-backed attacks, on these applications and the operating systems on which they run.

Rexel USA is the U.S. arm of Rexel Group, one of the world's largest electrical distributors, serving millions of U.S. customers across industrial, commercial, and residential sectors.

"ARIA's AZT PROTECT gives our customers a simple, effective solution to protect themselves. We had the first deployment's plant protected in just one hour," said Joshua Dirksen, National Director, Rexel USA. "Industrial operators need a better approach to providing cybersecurity. We are excited to bring this solution to our customers."

AZT PROTECT utilizes AI-based countermeasures to stop the attacks as they land on an operation's most vulnerable critical production control systems. These countermeasures lock down critical applications from adulteration while stopping code-based attacks such as malware and ransomware from executing. They also disrupt the techniques nation-state attackers use to land, expand, and then escalate privileges to take control of such systems.

"The partnership with Rexel helps ARIA strengthen its position in the operational technology (OT) market," stated Greg Pysher, ARIA SVP of Sales. "Rexel is trusted by thousands of industrial customers in the U.S. market."

About ARIA Cybersecurity

ARIA Cybersecurity, a business of CSPi Inc. (NASDAQ:CSPI), recognizes that better, stronger, more effective cybersecurity starts with a smarter approach. Our solutions provide new ways for organizations to protect their most critical assets-they can shield their critical applications from attack with our AZT solution, while monitoring internal traffic, device-level logs, and alert output with our ARIA ADR solution to substantially improve threat detection and surgically disrupt cyberattacks and data exfiltration. Customers in a range of industries rely on our solutions to accelerate incident response, automate breach detection, and protect their most critical assets and applications-no matter where they are stored, used, or accessed. Learn more at ARIACybersecurity.com

About Rexel USA

Rexel USA, the parent corporation for Rexel Group business activities in the United States, is headquartered in Dallas, Texas, and is one of the largest distributors of electrical products, data communication, and related supplies in the United States. Rexel USA operates its electrical distribution business in the United States through nine Regions that go to market under various banners and trade names, including Rexel, Rexel Automation, Gexpro, Mayer, and Platt Electric Supply. In addition to an online store, Rexel USA has a distribution network of over 500 warehouse storefront locations throughout the U.S.

Media Contact

Gary Southwell
Chief Executive of the ARIA HPP Division of CSP Inc.
ARIA Cybersecurity
info@ariacybersecurity.com

SOURCE: CSP, Inc

View the original press release on ACCESS Newswire

FAQ

What is the significance of ARIA Cybersecurity's partnership with Rexel USA for CSPI investors?

The partnership strengthens ARIA's position in the operational technology market and provides access to thousands of industrial customers through Rexel's distribution network.

How quickly can ARIA's AZT PROTECT be deployed at customer facilities?

The first customer deployment was completed in just one hour, demonstrating rapid implementation capabilities.

What specific cyber threats does ARIA's AZT PROTECT solution defend against?

AZT PROTECT defends against zero-day malware, ransomware, and nation-state-backed attacks on critical infrastructure applications.

How does ARIA's AZT PROTECT technology work to secure industrial systems?

It uses AI-based countermeasures to lock down critical applications and prevent code-based attacks from executing while disrupting techniques used by nation-state attackers.