The Tesserent Ltd (ASX: TNT) share price is rebounding strongly from yesterday's heavy falls. This comes after the company announced the acquisition of two companies, boosting its presence in the federal government cybersecurity space.
At the time of writing, the internet security services provider's shares are fetching 16.5 cents apiece, up 10%.
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Tesserent cements leading position in cybersecurity solutions
Investors are fighting to get a hold of Tesserent shares following the company's positive update.
According to its release, Tesserent advised it has acquired Pearson Corporation and Claricent through two separate share purchase agreements.
Both companies were targeted due to their strong position in the federal government marketplace.
Based in Canberra, Pearson Corporation is an IT consulting firm that has demonstrated experience in information security management services. The company operates in both the public and private sectors, providing expertise in cybersecurity, Microsoft, Carbon Black, and Ivanti products.
Notably, its services have assisted in delivering Essential 8 compliance for Commonwealth entities around Australia.
Tesserent's other acquisition Claricent is a private Australian company that specialises in governance risk and compliance (GRC) services.
Both additions are expected to immediately integrate into Tesserent's ecosystem, particularly its North Security business. This area is tasked with leading the company's federal government team by delivering deliver large multi-year projects.
Tesserent is set to pay $28.8 million for Pearson and $4.13 million for Claricent through a mix of cash and company shares. In total, the price tag of both acquisitions is $32.93 million.
The amounts are due to be paid in two instalments. Around 50% of the enterprise value will be paid on completion which is slated for December 2021. The remaining 50% is to be paid on the finalisation of audited accounts, estimated sometime in September 2022.
Tesserent chair Geoff Lord welcomed the newly-acquired businesses, saying:
… These acquisitions cement our position as the leading ASX-listed provider of cybersecurity solutions and services into Federal Government and the leading provider of Essential 8 consulting services, as well as contributing to our annual revenue and adding significant recurring EBITDA to the Group.
Tesserent share price summary
Despite the company's latest announcement, the Tesserent share price has failed to take off in 2021, down more than 50%. The company's shares reached a 52-week high of 44 cents in January, before gradually declining during the year.
Based on today's price, Tesserent commands a market capitalisation of roughly $199 million and has approximately 1.21 billion shares outstanding.
