Tesserent has claimed to be the largest dedicated publicly-listed cyber security business after purchasing the security division from PS&C for $16 million.
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The US-led "Five Eyes" intelligence alliance said on Tuesday that tech firms must allow law enforcement agencies access to encrypted material, warning that failing to do so puts people at risk.
A government-funded body's survey of Australian cyber security companies, which was conducted before the controversial encryption bill was passed but not released until late last month, reveals most firms fear the legislation will have a profoundly negative impact on their businesses.