- Tesserent (TNT) has advanced into the N.Z. market, acquiring Wellington-based cybersecurity consultant, Lateral Security
- The consideration for the buy is a blend of NZ$2.2 million (approximately A$2.1 million) in cash and 6.3 million TNT securities
- Lateral touts an ongoing operating relationship, with New Zealand’s Central Government generating 60 per cent of Lateral’s revenue
- The strategic move is intended to replicate TNT’s Australian Federal Government relationship and cement its position as a viable government and agency support service, according to a company spokesperson
- TNT shares are up moderately by 3.23 per cent trading at 32 cents each
Tesserent (TNT) has advanced into the N.Z. market, acquiring Wellington-based cybersecurity consultant, Lateral Security.
A share purchase agreement was signed between the two parties on December 16.
The consideration for the buy is a blend of NZ$2.2 million in cash (approximately A$2.1 million) and 6.3 million TNT securities issued at 32 cents each. The shares will be held in escrow for a period of 12 months.
Approximately half of the cash component will be paid on completion funded by cash reserves and the remaining amount deferred payment to six months after completion.
Strategic move
Lateral Security touts an ongoing operating relationship with New Zealand’s Central Government, which generates 60 per cent of Lateral’s revenue — the company posts an FY20 turnover of NZ$4.1 million (roughly A$3.9 million).
The strategic move is intended to replicate TNT’s Australian Federal Government relationship and cement its position as a viable government and agency support service, according to a company spokesperson.
TNT has indicated this to be a natural evolution in continuing to support government departments and agencies particularly within The Five Eyes nations, an intelligence alliance between Australia, New Zealand, Canada, the U.K. and the U.S.
In other news, TNT announced its joint engagement with N.Z. partner, Optic Security, and has commenced several key enterprise opportunities, including a fast-food chain, a university and local and state government departments.
TNT shares are up moderately by 4.84 per cent, trading at 32.5 cents each at 8:14 am AEDT.