Tesserent has secured $25 million in a capital raise to fund the cash payments for some of its recent acquisitions, as well as investments planned for the future.
It will see the ASX-listed cybersecurity provider issue up to 119 million new ordinary shares at an offer price of $0.21 per share.
The company outlined its plans for the cash in a release about the raise – $6 million will go to fund its acquisition of Loop Secure earlier this year, and $5 million for its Airloom acquisition in 2020.
$11 million is earmarked for forthcoming acquisitions that, Tesserent co-chief executive Julian Challingsworth told CRN, “will significantly increase our scale and capabilities in Canberra.”
He added, “We expect to announce in October, and this raise will support the associated cash consideration we need for the completion payment.”
The company has made a significant number of acquisitions in recent years, a strategy that was discussed in a recent episode of the CRN Podcast.
$3 million is to cover transaction and capital raise costs, as well as further planned investments through the company’s Innovation unit, which invests in businesses that Tesserent identifies as having IP that is potentially scalable and aligns with the company’s own portfolio.
Examples of recent investments out of Tesserent Innovation include biometric security firm Daltrey, and Secure Logic spin-out companies TrustGrid and AttackBound.
Tesserent co-chief executive Julian Challingsworth said, “We are pleased at the success of this equity raising to support the enhancement of our core capabilities and operational footprint in strategic high growth locations with a focus on the federal government market. We are grateful to welcome new strong institutional shareholders to the TNT register our thank existing institutional shareholders for their support. We thank all of our new and existing shareholders for the high level of conviction in our strategy, management team and all of the people driving our business forward.”
The company noted that none of the money raised would go toward its standard operating budget.
Tesserent saw massive growth in FY2020, with revenue up 233 percent over the previous financial year, as it integrate its acquisitions.
It also recently brought its Cloud, Detect, Defend and NZ units under a single name with updated visual branding.
Tesserent chief information officer Michael McKinnon contributed his expert knowledge in CRN's series of articles on the Critical Infrastructure Bill.
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