IT services provider PS&C has offloaded its security division to Melbourne security service provider Tesserent for $16 million.
The sale, which PS&C’s hinted at in its 2019 annual report, comes a month after the departure of CEO Glenn Fielding amid staggering losses in FY19. It also comes less than a year after selling off its telco business Allcom Networks.
In an ASX announcement (pdf) released today, PS&C acting CEO Robert Hogeland said the company is pleased to have been able to negotiate the sale.
“As a pure security focused business, Tesserent will now have a significantly stronger service offering across a substantially larger client base with the inclusion of our security assets,” Hogeland said.
In its own announcement (pdf), Tesserent said the acquisition would make it Australia's largest listed dedicated cybersecurity firm, forecasting more than $30 million in revenue in FY2020.
“The acquisition of the PS&C security business is a natural fit for Tesserent, with numerous synergies between the two groups that we expect will enable us to provide a comprehensive cybersecurity offering to our current and prospective customer base,” Tesserent managing director Julian Challingsworth said.
Tesserent said adding PS&C’s security business now gives it full cybersecurity capabilities including security advisory, penetration testing, deployment and management of security infrastructure and secure application development. The company also expands its footprint across Australia, Asia and the United Kingdom.
The deal is Tesserent’s second acquisition this year, after acquiring Melbourne Splunk partner Rivium in April. The company revealed in July that it expects to pursue more acquisitions, after securing an investment from UXC founder Geoff Lord in early 2019.