Why the Tesserent (ASX:TNT) share price is surging 7% higher today

The Tesserent Ltd (ASX: TNT) share price is charging higher on Thursday. The cybersecurity and networking solutions provider's shares were …

| More on:
Female cyber security expert surrounded by data on glass screens and looking down at a tablet.

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 is charging higher on Thursday.

The cybersecurity and networking solutions provider's shares were up as much as 7% to 29 cents at one stage today.

When the Tesserent share price hit that level, it meant it was up 26% since this time last year.

Why is the Tesserent share price charging higher?

Investors have been bidding the Tesserent share price higher today after it announced an acquisition.

According to the release, the company has signed a share purchase agreement to acquire cybersecurity company Loop Secure for ~$13.5 million. This comprises $9 million in cash and the balance in shares.

Loop Secure is an Australian cybersecurity company providing Managed Security Services, Governance, Risk & Compliance (GRC), and Offensive Security services.

The release notes that it operates a Security Operations Centre located in Melbourne, working predominantly with a range of international and domestic enterprises.

Why acquire Loop Secure?

Management notes that Loop Secure's services and solution offering is a strategic addition to strengthen Tesserent's Cyber 360 capabilities. It sees immediate synergies and opportunities to leverage its corporate relationships and skills within the company.

Loop Secure's unaudited FY 2021 turnover was $18 million, with operating earnings of $2.25 million. The acquisition is expected to be immediately earnings, cash flow and earnings per share accretive. The latter appears to be giving the Tesserent share price a big boost today.

Tesserent's Chairman, Geoff Lord, commented: "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."

Loop Secure's Chairman, Adam Davenport, added: "After more than 15 years as a leading cybersecurity firm, I am delighted Loop Secure will 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."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

A young woman smiles as she rides a zip line high above the trees.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors kicked off the trading week in style today.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Share Gainers

Why Liberty, Lovisa, Novonix, and SG Fleet shares are storming higher today

These shares are starting the week strongly. But why? Let's find out.

Read more »

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another disappointing day for ASX investors this Thursday.

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Share Gainers

Why Pinnacle, PWR, Race Oncology, and Vulcan shares are flying today

These shares are having a good session on Thursday. But why?

Read more »

A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.
Share Gainers

Why Boss Energy, Emeco, Mineral Resources, and Plenti shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »