Publicly listed cyber security services provider Tesserent plans to acquire cyber security firm Loop Secure as a "strategic addition" to the company for a combined price of $13.5 million.
Headquartered in Sydney and containing offices in Melbourne and Brisbane, Loop Secure offers managed security services, governance risk and compliance and offensive security services, as well as a security operations centre in Melbourne.
The acquisition is being viewed as a “strategic addition to strengthen Tesserent’s Cyber 360 capabilities”, according to a statement published to the Australian Securities Exchange (ASX), with synergies and opportunities expected through its corporate relationships and skills.
The price consists of a combination of $9 million in cash, with $7 million paid on completion and the balance to be paid out over a 12-month period, and 15.9 million in Tesserent shares with a 14-day volume weighted average price (VWAP) of $0.28, worth approximately $4.5 million.
“The addition of Loop Secure to the [Tesserent] group is a welcome one, cementing our position as the leading ASX-listed provider of cybersecurity solutions and services in A/NZ and as well as contributing to our annual turnover and adding significant recurring revenue to the Group,” Geoff Lord, Tesserent’s chairman, said.
Meanwhile, Adam Davenport, Loop Secure chairman, said that the acquisition would provide Loop Secure with “substantial” resources and new opportunities.
“After more than 15 years as a leading cybersecurity firm, I am delighted Loop Secure will become part of the Tesserent Group,” he added.
Tesserent’s proposed acquisition of Loop Secure follows its move to roll its recent acquisitions — Airloom, Pure Security, Rivium, Secure Logic, iQ3 — into its own brand under various units, which also sees its New Zealand arm incorporate the services of the NZ-based Lateral Security, which is retaining its branding.
Following from this, Check Point’s Hamish Soper was appointed as senior partner for Tesserent NZ.