Tesserent (ASX:TNT) buys Loop Secure with cash and shares

• Tesserent (TNT) buys Australian cybersecurity firm, Loop Secure, through a share purchase agreement
• Tesserent will pay $9 million in cash and issue 15.9 million shares at a 14-day volume-weighted average price of 28 cents
• Loop recorded an unaudited FY21 turnover of $18 million, delivering $2.2 million earnings before interest, taxes, depreciation, and amortisation
• Tesserent says this purchase will add significant recurring revenue and position it as a leading ASX-listed provider of cybersecurity solutions and services
• Company shares are up 3.7 per cent, to trade at 28 cents per share

Tesserent (TNT) has purchased cybersecurity firm, Loop Secure, through a share purchase deal.

Loop Secure is an Australian business that provides security services. It operates a security operations centre in Melbourne.

To purchase the company, Tesserent will pay $9 million in cash and issues 15.9 million shares at a 14-day volume-weighted average price of 28 cents.

Of the cash component, $7 million will be paid when the acquisition is completed and the remaining $2 million will be paid over 12 months which will be funded from existing cash reserves and a finance facility.

Based on its recent FY21 results, Loop has an excellent operating record. It had an unaudited FY21 turnover of $18 million, delivering $2.2 million earnings before interest, taxes, depreciation, and amortisation (EBITDA).

TNT Chairman, Geoff Lord, said Loop is the perfect fit for the company.

“The addition of Loop Secure to the TNT group is a welcome one, cementing our position as the leading ASX-listed provider of cybersecurity solutions and services in ANZ and as well as contributing to our annual turnover and adding significant
recurring revenue to the group,” he said.

Loop Chairman, Adam Davenport, was also pleased to become part of the Tesserent Group.

“The transaction provides Loop with immediate access to substantial resources and new opportunities and will allow us to continue our strong growth in the key cybersecurity domains of monitoring, consulting and solutions.”

Tesserent was up 3.7 per cent, to trade at 28 cents per share at 1:02 pm AEST.