IT security services provider Tesserent has secured an extra $20 million to fund upcoming acquisitions after reaching a deal to increase its debt facility.
The company reached an agreement with its asset broker Pure Asset Management to increase its debt facility from $15 million to $35 million.
The increase also comes with “improved” repayment terms with the interest rate decreased from 8.9 percent to 8.5 percent.
“We’re extremely pleased to continue our working relationship with Pure Asset Management who continue to support the firm’s vision and strategy and back us as the number one ASX-listed cybersecurity company,” Tesserent co-chief executive Julian Challingsworth said.
“This extended facility provides the funding cornerstone to continue to drive the company’s acquisition strategy with minimal dilutionary impact on our existing shareholders.”
Also as part of the agreement, Tesserent will provide Pure 44 million in stock warrants exercisable at $0.45. Tesserent also disclosed it has a cash balance in excess of $5 million.
“Growth through acquisition continues to increase our capabilities, geographic reach and the number of organisations that the Tesserent group serves,” Challingsworth added.
“We now have increased funding flexibility and certainty around funding potential future acquisitions to continue this strategy.”
Tesserent has been on an acquisition spree since 2019, snapping up seven security services providers to date.