Why is the Tesserent (ASX:TNT) share price climbing 11% on Friday?

Is the newly finalised acquisition of Loop Secure boosting the Tesserent share price today?

| More on:
Tesserent cybersecurity professional man inspects server room and works on laptop

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 surging today despite no news being released by the company.

However, only minutes before yesterday's close, Tesserent announced it had completed its acquisition of Australian cybersecurity firm, Loop Secure.

Tesserent spent around $13.5 million to acquire Loop, using a mix of cash and scrip to pay.

At the time of writing, the Tesserent share price is 24.2 cents, 10% higher than its previous close.

Let's take a closer look at the most recent news from the internet security-as-a-service provider.

Tesserent finalises Loop acquisition

The Tesserent share price is gaining today despite no news from the cybersecurity and cloud services company. However, its recently finalised acquisition is a potential catalyst.

Yesterday, Tesserent announced it had completed its acquisition of Loop Secure. While investors' enthusiasm for Tesserent shares may have been spurred by this today, the acquisition has been a long time coming.

Tesserent first announced its plan to acquire Loop on 19 August.

Back then, the market was seemingly indifferent to the announcement. The Tesserent share price finished that session exactly where it had ended the previous one.

According to Tesserent, its purchase of Loop adds an additional $18 million of unaudited revenue to its books. Loop also has $2.25 million of sustainable earnings before interest, tax, depreciation, and amortisation (EBITDA).

Additionally, Loop's security services will strengthen Tesserent's Cyber 360 capabilities and deliver significant synergy and cross-selling benefits.

Tesserent previously said the acquisition would see it paying $7 million of cash on completion. It expects to pay another $2 million over the following 12 months.

Tesserent share price snapshot

Today's gains haven't been enough to boost the Tesserent share price back into the green.

The company's stock value has fallen 30% since the start of 2021. It is almost 7% lower than it was this time last year.

Motley Fool contributor Brooke Cooper 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 Technology Shares

two computer geeks sit across from each other with their laptop computers touching as they look confused and confounded by what they are seeing on their screens.
Technology Shares

What's happening with ASX 200 tech shares following the Nasdaq rout?

Aussie tech investors will be eyeing the big retrace in the Nasdaq overnight.

Read more »

Lithium ion batteries
Earnings Results

Needs a recharge: Novonix share price sees red after Q3 earnings

Investors were likely expecting a tad more.

Read more »

Two boys in business suits holding handfuls of money
International Stock News

Here are the US stocks that just delivered James Packer a $590 million profit

US tech continues to dominate.

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Guess which ASX tech stock just leapt 26% on accelerating growth

Here’s what’s grabbing investor interest.

Read more »

A woman screams and holds her hands up in frustration.
Technology Shares

Cettire shares crash 17% on sinking profits

This online retailer has had a tough start to FY 2025. Here's what you need to know.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Technology Shares

Why this top broker just upgraded DroneShield shares

Bell Potter sees recent share price weakness as a buying opportunity for investors.

Read more »

A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.
Technology Shares

Big Tech could make or break ASX shares this week. Here's why

This week will be huge from an earnings perspective.

Read more »

Focused man entrepreneur with glasses working, looking at laptop screen thinking about something intently while sitting in the office.
AI Stocks

Down 12% in a week. Why are Appen shares sinking again?

The tech stock continues its slide today.

Read more »