- Tesserent (TNT) has officially signed an agreement to acquire the secure cloud services firm iQ3
- The company said the purchase will open up significant synergy benefits and cross-selling opportunities
- It also said acquiring iQ3 allows Tesserent to achieve its goal of having a $100 million turnover on an annualised basis
- All up, the cyber security stock will pay $8.6 million and issue over 34 million TNT shares to acquire iQ3
- Shares in Tesserent have opened trading up nearly 7 per cent, for 23 cents each
It’s been a big morning for cyber-security business Tesserent (TNT) after it announced the acquisition of secure cloud services firm iQ3.
The company said purchasing iQ3 will open up significant synergy benefits and cross-selling opportunities, as it’ll be able to offer end-to-end cyber services.
The good news didn’t stop there though, Tesserent also revealed the acquisition will allow it to achieve its goal of having a $100 million turnover on an annualised basis.
The cybersecurity stock said in today’s update that turnover increase was “in excess of one thousand per cent since the refresh of the Tesserent board in January 2020.”
Tessernet has had its eye on iQ3 for some time, as its services and solution offerings complements its own Cyber 360 strategy.
“The addition of Secure Cloud Services to our Solution portfolio is a strategic piece to our Cyber 360 offering that takes us one step closer to executing our strategic go-to-market vision,” TNT’s Chairman Geoff Lors explained.
The cloud services firm also has a strong base of customers, including internationally recognised brands and local and state governments.
Additionally, iQ3 had an FY20 turnover in excess of $25 million and delivered a $3 million EBITDA in the same period.
Tesserent said this acquisition is immediately earnings, cash flow and EPS accretive for the company, and it will bring in $30 million in annual recurring revenue.
“We’re extremely pleased to welcome iQ3 into the Group… It’s also particularly pleasing to have achieved our $100 million turnover run rate well before December which now gives us a solid base for material future growth,” Geoff added.
The share purchase agreement between the two parties was executed yesterday, with Tesserent to pay $8.6 million in cash in consideration. It’ll also issue over 34 million TNT shares, at a price of 24.9 cents each.
Following today’s acquisition news, shares in TNT have been sitting in the green. They’re currently trading up 6.98 per cent at 23 cents each at 12:26 pm AEST.