- Cybersecurity company Tesserent (TNT) has purchased Secure Logic’s managed security services arm
- The acquisition will see Tesserent issue more than 42 million shares and pay $10.75 million, partly funded by a new finance facility
- The company recently signed a deal with PURE Asset Management to increase its debt facility with improved payment terms
- The new facility raises Tesserent’s initial capacity from $15 million to $35 million to fund near-term acquisitions, such as Secure Logic
- Under the agreement, improved payment terms include a decreased interest rate of 8.5 per cent, down from 8.9 per cent, per annum
- The deal also grants PURE 44,444,445 warrants, exercisable at 45 cents each
- TNT currently has a cash balance in excess of $5 million
- Tesserent shares are up 3.64 per cent to 28.5 cents
Cybersecurity company Tesserent (TNT) has purchased Sydney-based Secure Logic’s managed security services business.
Tesserent will issue more than 42 million shares in the acquisition and pay $10.75 million cash, partly funded by a new finance facility.
Tesserent Chairman Geoff Lord acknowledged Secure Logic’s service offering as a strategic addition to the company, with immediate opportunities to leverage state and federal government relationships and capabilities within the group.
“I welcome Secure Logic to the TNT group, strengthening our position as the leading provider of government-focused cybersecurity solutions and services in Australia and New Zealand,” Geoff said.
“This acquisition contributes to our 2021 financial year $150 million turnover annualised rate ambition,” he added.
Secure Logic recorded audited turnover of $9 million for the 2020 financial year, delivering $4.2 million in earnings before interest, taxes, depreciation and amortisation.
PURE Asset Management agreement
The purchase was made possible through a recent deal between Tesserent and PURE Asset Management to increase its debt facility.
The facility will raise Tesserent’s initial capacity by $20 million, from $15 million to $35 million, to fund near-term acquisitions, like Strategic Logic, in its pipeline.
The agreement also improves the company’s payment terms, decreasing its interest rate from 8.9 per cent down to 8.5 per cent per annum.
The deal will also grant PURE 44,444,445 warrants, exercisable at 0.45 cents each.
Tesserent Co-CEO Julian Challingsworth commented “We’re extremely pleased to continue our working relationship with PURE Asset Management who continue to support the firm’s vision and strategy and back us as the number one ASX-listed cybersecurity company,” he said.
“This extended facility provides the funding cornerstone to continue to drive the company’s acquisition strategy with minimal dilutionary impact on our existing shareholders,” Julian added.
“Growing through acquisition continues to increase our capabilities, geographic reach and the number of organisations that the Tesserent group serves.”
Tesserent shares are up 3.64 per cent to 28.5 cents at 2:14 pm AEDT.