Tesserent Limited (ASX: TNT) is a firm indulged in the business of providing cybersecurity and networking services to enterprises across the world. The company’s 24/7 Security and Network Operations Centre helps to provide world-class surveillance to the customers around the globe, particularly in Australia, UK and Korea. The advanced security and network connectivity offered by Tesserent enables the safety and security of its customers’ data.
Tesserent Limited announced the issue of 240,000 fully paid ordinary shares and 4.6 million Options on 18 April 2019. The shares will be issued on conversion of Options.
1,600,000 Options will be issued as part payment of brokerage fees for placements dated 29 March 2019 and 19 March 2019. Out of which, 1,100,000 call options will be exercisable at $0.10 expiring on 19.03.2021, and 500,000 call options will be exercisable at $0.10 expiring on 29.03.2021. 3,000,000 Options will be issued to the employee as a part of remuneration that will be the call options exercisable at $0.075 expiring on 18.04.2021.
Tesserent announced on 18 April 2019 that it had acquired a security advisory & Splunk consultancy business, Rivium Pty Ltd. Rivium is a Melbourne-based organisation that specialises in providing consulting and security solution Splunk to the enterprises. Being one of the most experienced specialists of Australia, Rivium captures high profile customers from government and private sectors.
Rivium possesses a well-established team that adds benefit to Tesserent’s suite of cybersecurity solutions. The team provides Security Information Event Management (SIEM) and controls insider threat. Rivium has offices across Queensland, Victoria, New South Wales and the ACT.
Tesserent new growth strategy is directed on the acquisition of cybersecurity products and services which would open the way for the firm to become Australia’s leading cybersecurity company.
Acquisition of Rivium costed $3.25m to Tesserent. The payment was made in a combination of cash ($1.495m) and scrip (17.55m shares at the cost of $0.10 per share, subject to shareholder approval). Rivium projects its company to earn revenue of $4.35m and an EBITDA of $650,000 in FY 19.
To assure that there is a strong strategic, cultural and operational alliance between the two entities, Tesserent has completed the tax, legal and financial due diligence process before execution of the Share Purchase Agreement.
Julian Challingsworth, CEO of Tesserent believes that the acquisition of Rivium is the first step taken by the company to become a full-service cybersecurity business. The company is attempting to grow its business in future with additional acquisitions. According to him, Tesserent has an excellent opportunity to grow its experience and capability through acquisitions.
According to Robert Silver, CEO of Rivium, this consolidation between Rivium and Tesserent was an opportunity for the company to accelerate its growth. He is of the view that this acquisition will allow the company to boost its marketing initiatives and improve its offering to new and existing customers.
The company’s shares last traded at a market price of AUD 0.060 (As on 23 April 19, AEST 1:10 PM). The market capitalisation of the company stands at $10.68 million. The 52-week high price is $0.097. As per the lasted updated ASX data, the EPS stands at -$0.030.