Managed security specialist Tesserent has acquired enterprise security specialist and Splunk partner Rivium for $3.2 million.
The announcement follows Tesserent’s earlier decision to cancel its plans to acquire Melbourne-based managed services provider Asta Solutions as it looks to focus on security.
Rivium, which has offices in Melbourne, Sydney, Brisbane and Canberra, adds a Security Information Event Management (SIEM) to Tesserent’s cybersecurity offerings.
“The acquisition of Rivium is the first step as we endeavor to grow our experience and capability, via acquisitions, toward being a full-service cybersecurity business,” Tesserent chief executive Julian Challingsworth said.
“In a sector that remains fragmented it provides Tesserent with an outstanding opportunity, and we expect to continue this momentum with additional acquisitions in the short term.”
Tesserent paid the acquisition in a combined $1.5 million in cash and the rest in 17.55 million Tesserent shares at 10 cents per share. The company expects the acquisition will be earnings accretive immediately, with Rivium forecasting revenue of $4.4 million and EBITDA of $650,000 for the 2019 financial year.
“We have generated strong growth in the Rivium business in recent years but saw an opportunity to accelerate our growth by consolidating alongside a company that complements what we do,” Rivium chief executive Robert Silver said.
“With Tesserent we have identified synergies that will allow us to boost our marketing initiatives, improve our offering to new and existing customers and thus boost our growth. The team is excited about the next chapter in the Rivium story.”