Tesserent Ltd (ASX: TNT) Acquires Blue Reef Pty Ltd.

KEY TAKEAWAYS:

• Tesserent Limited has acquired Blue Reef Pty Ltd. for $3,575,000 to be paid in cash ($1.0 million). The deal also includes 12,875,000 ordinary fully paid shares with a $0.20 per share value.
• With the deal, Tesserent also acquired Blue Reef’s intellectual property rights and all of its business operations.
• The acquisition will make possible Tesserent’s expansion plans and will boost its revenue, technology and customer reach.

Tesserent Limited is set to pay $3,575,000 for the acquisition of Blue Reef Pty Ltd. including its intellectual property rights and all of its business operations. This is part of Tesserent’s plan to acquire potential companies that could bring in additional revenue, technology and customer reach to the company as the deal will add over 150 education clients to Tesserent.

The acquisition, which requires Tesserent to pay $1.0 million in cash, is expected to further strengthen the company’s position in the education vertical which priorities cyber security. Tesserent has agreed to a payment schedule of $500,000 upon the deal’s completion plus $250,000 within six months and another $250,000 in twelve months. The payment scheme also includes 12,875,000 ordinary fully paid shares with a $0.20 per share value.

Aside from getting technology, Tesserent will also gain the highly-skilled team of Blue Reef, and this is expected to enhance the company’s existing sales, development and operations capabilities. The deal will also help the company expand through partner relationships in the United States and Asia.

Tesserent provides world-class managed security services to its clients not only in Australia but also internationally. Its Managed Security Service Provider (MSSP) Platform allows the delivery to end-users of Security-as-a-Service through its channel, direct and wholesale offerings.

The company’s MSSP Platform, which provides Security-as-a-Service market to subscribers, is expected to increase in demand to US$26.9 billion in 2019 from $US12.5 billion in 2015. The Platform paves the way for an effective delivery of security functions for the computer network of an organisation including its content inspection, firewall, bring-your-own-device support and intrusion detection.

The ASX-listed company provides services to its customers found in 11 countries and territories. Among its customers in Australia are The Good Guys, Toyota, BMW, Nintendo, Reece and Maxitrans. It also services various industry sectors including logistics, religious institutions, healthcare, transport, financial services, education, professional services and government.

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