Tesserent (ASX:TNT) share price leaps 10% on acquisition news

The company’s shares are lifting off today.
The post Tesserent (ASX:TNT) share price leaps 10% on acquisition news appeared first on The Motley Fool Australia. –

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%.

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.

The post Tesserent (ASX:TNT) share price leaps 10% on acquisition news appeared first on The Motley Fool Australia.

Should you invest $1,000 in Tesserent right now?

Before you consider Tesserent, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Tesserent wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

What’s with the Tesserent (ASX:TNT) share price wobbles today?

Motley Fool contributor Aaron Teboneras 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!