- Tesserent (TNT) has been titled Canberra’s largest cybersecurity provider after acquiring Seer Security’s Melbourne and Canberra offices
- The company says the buy gives it access to a portfolio of Federal Government cybersecurity clients, as well as agencies like defence and law enforcement
- The acquisition follows the Federal Government’s $1.35 billion Cyber Enhanced Situational Awareness and Response (CESAR) budget — the country’s largest-ever investment in cybersecurity
- Tesserent’s purchase includes $5 million in cash and nearly 77 million shares
- Now, the company will secure the capital for the buy from its loan with Pure Asset Management, a fund for ASX-listers
- Tesserent is up 38.5 per cent today, shares trading for 16.5 cents
Tesserent (TNT) has become Canberra’s largest cybersecurity provider after acquiring Seer Security’s Melbourne and Canberra offices.
The company says the buy gives it access to a portfolio of Federal Government cybersecurity clients, as well as agencies like defence and law enforcement.
The acquisition, comprising a $5 million cash payment and nearly 77 million TNT shares — 6,923,077 of which are subject to shareholder approval — was announced to the ASX today.
TNT will provide Seer with half the cash when the acquisition is complete, and then two $1.25 million payments 13 months and 25 months after the completion date.
The company will secure the $5 million in capital from its loan with Pure Asset Management, a fund for ASX-listers.
TNT Chairman Geoff Lord says the Seer acquisition is a timely addition to the company’s cybersecurity portfolio.
“We are delighted to welcome Seer Security to the group, particularly in
light of the $1.35 billion Cyber Enhanced Situational Awareness and Response (CESAR) package to combat foreign cyber threats to Australian sovereignty, recently announced by Prime Minister Scott Morrison,” Geoff explained.
The Federal Government’s CESAR budget marks the country’s largest-ever investment in cybersecurity.
Speaking to the acquisition, Seer Managing Director Scott Ceely said the current market represented a significant opportunity for cybersecurity companies.
“Having the support of Australia’s largest listed cyber company behind us will enable Seer to scale up and expand our capabilities to better serve the organisations that are securing our nation,” Scott noted.
What’s next?
Even though it’s only just announced its latest acquisition, TNT says it’s open to other buy opportunities on the horizon.
“Current market conditions continue to present tremendous consolidation opportunities in the short to medium term, and we fully expect to take advantage of this with additional acquisitions currently under consideration,” said Tesserent’s co-CEO, Julian Challingsworth.
Today, investors have been eager to buy into TNT’s acquisition news, with shares tacking on over a quarter of their value in midday trade. Stock is priced at 16.5 cents per share at 1:42 pm AEST.