Information Technology company Tesserent Limited (ASX:TNT), via an ASX announcement on 17 December 2020, shared that it has acquired New Zealand-based cybersecurity firm Lateral Security as both the parties signed a share purchase agreement on 16 December.
The deal is a mix of cash amounting to NZ$2.2 million and 6.3 million TNT securities made available at 32 cents each, which shall be inn escrow for a period of one year.
About Lateral Security acquisition
A renowned cybersecurity consulting firm, Lateral Security is based in Wellington and has branch offices in Auckland and Christchurch. The firm specialises in offering assistance in counseling, security testing, incident response and other managed services.
This particular acquisition balances Lateral Security’s persisting joint business with New Zealand’s Optic Security and generates vital cross-sell chances between the two companies.
Lateral Security shares a great reputation within New Zealand government. An additional 60% of Lateral’s revenue is generated from here. Now, TNT eyes this fact as an organic evolution in sustaining support to the government.
TNT chairman Geoff Lord shared that the accumulation of Lateral Security is a vital move in expanding international capabilities to become ANZ’s topmost ASX-listed cybersecurity provider.
So far, Lateral Security has had an impressive operating record, with FY20 turnover of NZ$4.17 million, delivering NZ$850 thousand EBIDTA.
Meanwhile, the TNT stock settled at $0.325 per share, up 4.838% with market capitalisation at $ 300.05 million.