ASX-listed managed security specialist Tesserent has postponed its proposed $3.8 million acquisition of Melbourne-based managed services provider Asta Solutions.
The company said the decision came amid “numerous” acquisition opportunities in its pipeline, and may revisit the deal in the second half of the current financial year.
Chief executive Julian Challingsworth told CRN the acquisition process was "difficult" and that Tesserent will be focusing on other security companies instead.
"We're looking for specialists in end-to-end security, penetration testing and vulnerability testing to build a comprehensive security team in Australia and Asia," Challingsworth said.
Challingsworth added Tesserent has started discussions with a security provider with critical infrastructure customers like government and utilities. He said the customer base could potentially increase to more than 1000 upon completion.
Tesserent also revealed it raised $565,000 as part of its ongoing funding for the acquisitions, raising a total of $2.25 million since January.
“Following significant interest from vendors we have been able to raise additional funds to support the business as it accelerates its acquisition-focused growth strategy,” Challingsworth said.
“The funds raised will allow us to move quickly in exploring and executing on the high-value opportunities we’ve identified in the security space.”
The Asta acquisition was announced in August last year, expecting to bring over 200 clients and 85 staff from Melbourne, Sydney, and Auckland into Tesserent’s fold. Prior to that, the two companies also signed a secured managed networks partnership in November 2017.
Asta is a Microsoft partner offering managed services, cloud, business consulting, mobile app development and web and software development. The company was established in 1999.
Updated 29 March 3:20pm: added further commentary from Tesserent