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.
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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."
