State-owned communications and networks company Kordia has bought Wellington-based Aura Information Security for NZ$10 million.
Kordia was not named as part of the TaaS panel.
Kordia will become an agent for the RedShield's web application shielding service in New Zealand and Australia.
Kordia said the Aura deal makes it New Zealand's leading cyber-security business.
Aura was founded in 2001 by Andy Prow and provides specialist computer and network security services in New Zealand, Australia and the US.
"The recently published Institute of Directors Sentiment Survey showed that only 27 per cent of New Zealand boards are confident of their ability to deal with a cyber-security incident," Kordia's chief executive Scott Bartlett said.
"Aura fits perfectly with Kordia's focus on mission critical technology, as we already help protect some of New Zealand's largest businesses from attack."\
Prow said the deal is the culmination of lots of hard work for Aura and RedShield.
"Having Kordia as our partner here in NZ and Australia will massively grow our presence and capability locally and will help to further support and accelerate RedShield's global growth," he said.
Aura will operate under a separate division within Kordia and all Aura personnel are being retained, he said.