ASX-listed cybersecurity services company Tesserent has acquired Loop Secure for $13.4 million in cash and stock.
Headquartered in Sydney with offices in Melbourne and Brisbane, Loop Secure specialises in managed security, governance, risk and compliance (GRC) and offensive security services. It also has a security operations centre (SOC) in its Melbourne office.
Tesserent said the acquisition would bolster the capabilities of its Cyber 360 security platform, including red teaming, MFA projects, end point protection (especially for WFH environments); and threat hunting.
“After more than 15 years as a leading cybersecurity firm, I am delighted Loop Secure will become part of the Tesserent Group,” Loop Secure chairman Adam Davenport said.
“The transaction provides Loop with immediate access to substantial resources and new opportunities and will allow us to continue our strong growth in the key cybersecurity domains of monitoring, consulting and solutions.”
Tesserent added that Loop Secure has had an “excellent” operating record with unaudited turnover of $18 million and EBITDA of $2.25 million, and is expected to be immediately earnings, cash flow and EPS accretive.
The $13.4 million price tag will be a combination of $9 million in cash and $4.45 million in Tesserent shares.
“The addition of Loop Secure to the TNT group is a welcome one, cementing our position as the leading ASX-listed provider of cybersecurity solutions and services in ANZ and as well as contributing to our annual turnover and adding significant recurring revenue to the group,” Tesserent chairman Geoff Lord said.
In May this year, Loop Secure partnered with code security training provider Secure Code Warrior to provide a training platform for recognising and removing coding vulnerabilities in IT software.
Loop Secure is the latest in a long line of Tesserent acquisitions dating back to 2019, three years after going public in early 2016. These acquisitions were discussed in-depth by Tesserent co-CEO Kurt Hansen in a recent episode of the CRN Podcast.