Tesserent share price surges 42% following new acquisition

The Tesserent share price has surged more than 40% today following the company's announcement of another strategic acquision.

| More on:
Digital screen depicting padlock overlaid on circuit board

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Tesserent Ltd (ASX: TNT) share price has soared more than 42% higher today, on the back of an announcement regarding a strategic acquisition of Seer's security businesses in Melbourne and Canberra.

What does Tesserent do?

Tesserent provides enterprise-grade cyber security and networking solutions targeted at the mid-market. Its customer base spans Australia, the United Kingdom and Korea. The company's flagship offering is its 'Cyber 360' strategy which includes solutions such as identification, protection and 24/7 monitoring to combat the growing risk of cyber security threats. 

Tesserent's acquisition today follows a series of previous cyber security acquisitions for the company. These include Pure Security, Rivium and North. Tesserent is now Australia's largest ASX listed dedicated cyber security firm.

Details of Seer acquisition

Tesserent announced the strategic acquisition of Seer's security businesses today by the signing of a binding share purchase agreement. Seer's security businesses are based in Melbourne and Canberra. The acquisition was purchased with a combination of $5 million of cash and existing Tesserent shares.

Seer reported over $7.6 million in revenue and $2.2 million of sustainable earnings during FY 2020. In addition, Seer has strong revenue and earnings growth anticipated for FY 2021.

The acquisition strengthens Tesserent's security services and delivery capabilities to a number of Australian Federal Government departments and agencies. These include both Defence and Law Enforcement. In particular, it will assist in the delivery of Assurance and Governance, as well as Risk and Compliance (GRC) services. The acquisition will also enhance Tesserent's software development capabilities.

On the back of this most recent acquisition, Tesserent has now evolved to become Canberra's largest pure cyber security provider.

Seer's Managing Director, Scott Ceely, commented; "there is a significant opportunity for Australian-based cyber firms to work with all levels of Australian government to improve their security posture."

Julian Challingsworth, Tesserent's Co-CEO commented; "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".

Surge in Tesserent share price this week

The strong rise in the Tesserent share price today follows a surge in its share price earlier this week. This came after the company released a very positive trading update on Monday. Tesserent announced that it had successfully completed its financial objectives for the year and secured a debt facility. At the time of writing, the Tesserent share price is trading at 18.5 cents.

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Person handing out $50 notes, symbolising ex-dividend date.
Broker Notes

Where to invest $20,000 into ASX 200 shares

Brokers think these shares could be top picks for Aussie investors.

Read more »

The words short selling in red against a black background
Share Market News

These are the 10 most shorted ASX shares

Let's see which shares short sellers are targeting this week.

Read more »

Woman in celebratory fist move looking at phone
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A female financial services professional with a manicured black afro hairstyle turns an ipad screen to show a client across the table a set of ASX shares figures in graph format.
Share Market News

Record CBA share price and blockbuster merger push ASX 200 financials sector to the top

ASX financial stocks led the 11 market sectors last week with a 1.95% gain.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Market News

CBA Shares in focus: How Australia's most valuable company is using AI to compete

Could AI initiatives drive CBA shares higher?

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Broker Notes

These ASX 200 shares could rise 20% to 50%

Looking for big returns? Brokers think these shares could do the job.

Read more »

asx share price represented by cartoon letters spelling the word FOMO
Share Market News

What did Macquarie's "FOMO Meter" reveal about the stock market in May?

Is the market getting frothy or is there still room to climb?

Read more »

Market up or down
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough end to the week...

Read more »