Transaction Solutions International (TSN) has completed the acquisition of Sydney-based cloud and security service provider Cloudten.
The acquisition was approved by TSN's shareholders on 29 January, and will see the company pay an initial $3 million to Cloudten, plus another $5.6 million to be paid in tranches over the next 12 months.
Cloudten is an AWS advanced consultancy partner with competencies in government and security. The company raked in $3.8 million in revenue in the year ending 30 June 2018, for $1.6 million in net profit. For its efforts, Cloudten placed No.4 in the CRN Fast50 for 2018, growing 155.16 percent in FY17-18. That year also saw Cloudten more than double its headcount, score a place on the UK government's digital marketplace and win work with major public sector agencies.
TSN is an ASX-listed technology services provider that predominately caters to the financial services sector. and said in a statement that Cloudten would be a strong fit with its existing cybersecurity specialist Decipher Works, and that there was room for potential synergies with bundled services like a platform-as-a-service offering.
"We are pleased to welcome Cloudten to the TSN Group," chairman Gary Foster said.
"Cloudten's strong business fundamentals provide good cash flow and exciting growth opportunities to TSN. We will focus on working with both Cloudten and DWX management to embed best practices into the commercial and operational aspects of the business to prepare it for further growth opportunities."
TSN also said that Cloudten would continue with its growth strategy, with expansion into Melbourne, the UK and Singapore on the agenda in the next couple of years.