ASX-listed security services firm Tesserent has completed its $10 million acquisition of Sydney managed services provider Secure Logic.
Tesserent said the deal adds Secure Logic’s $9 million turnover run rate and $4.2 million in earnings to its own balance sheet, as well as bolstering its government capabilities.
The deal was first announced in March, with Secure Logic joining Tesserent's Government practice group. Tesserent also became the strategic partner of ex-Secure Logic CEO Santosh Devaraj's new venture, TrustGrid.
The development comes as Tesserent reported record earnings, revenue and cash flow for the quarter ended 31 March 2021.
Tesserent saw its operational EBITDA increase to $1.7 million, up 21.4 percent year over year from $1.41 million.
The company also set a record high $9.1 million of monthly turnover in March 2021, contributing to the $21 million turnover for the quarter. Cash flow also hit a record high of $1.8 million in the same month.
With the results, Tesserent now expects to deliver “significant” revenue growth in the next quarter based on its current recurring revenue and a strong pipeline of both renewal and new sales opportunities.
The company also credited its current and ongoing profitability to the integration of its multiple acquisitions, including Secure Logic and Lateral Security from this year alone, resulting in “broad” cost savings, including the consolidation of office space and other operational resources.
Tesserent also revealed that chief financial officer Peter Fearns has departed the company and named James Jones as his replacement.
“As we continue to integrate our recent acquisitions, we’re very fortunate to have secured the services of someone of James’ calibre and significant experience, both of which will be an immensely valuable addition to our Executive Team,” Tesserent co-chief Julian Challingsworth said.